Pontificia Universidad Católica de Chile Pontificia Universidad Católica de Chile
Ajzenman, N., Dominguez, P., & Undurraga, R. (2022)

Immigration and Labor Market (Mis) perceptions

Revista : AEA Papers and Proceedings
Volumen : 112
Páginas : 402-08
Tipo de publicación : Revista Ir a publicación


Exposure to immigrants often triggers sentiments of hostility and backlash among native-born populations. Among the main concerns identified by surveys, labor market conditions typically rank at the top. We combine a two-way fixed effects model with a Bartik-type 2SLS model to causally estimate the effects of immigration on labor outcomes in Chile, where the foreign-born population almost tripled in five years. While immigration did not systematically affect employment levels, it did cause an increase in unemployment-related concerns. Our results provide a plausible hypothesis to explain the backlash against immigrants: misperception regarding the effect of immigrants on labor market conditions.