Article Review

ARTICLE REVIEW 2

The first article authored by Peri details the Effects of Immigrantson U.S Employment and Productivity. The author analyzes how theimmigrants affect the total output, income per worker and employmentboth in the short and long-run. The job market adjusts to accommodatethe extra hands. According to the belief by many people that thepresence of immigrant sin the country displaces local workers theauthor observes that it only does so in the short-term and theadjustments in the long-term accommodates both the natives and theimmigrants.1However, the author also finds out that immigrants increase theaverage hours per worker reduces the skill requirement. These twoaffect labor productivity.

Another article authored by Card on immigrant inflows, nativeoutflows and the impacts on the labor market, the author, uses thesame approach used by Peri in discussing the effects do the presenceof immigrants on the labor market.2The author observes that although the presence of new immigrants inthe country may affect the Labor availability for the natives, itdoes not affect the labor structure. However, it may result in thelack of employment for the unskilled workers, an effect also noted byPeri.

The third article authored Dustmann et al. highlights the effects ofimmigration on the distribution of wages. The article indicates thatimmigrants downgrade significantly upon arrival into the country asthey align to the new work environment. The author agrees with thesentiments expressed by Card and Peri that immigration does notaffect the employment of the skilled workers.3However, this in the lowest 20 percentile of the labor force, thattranslates to those without or with basic skills may find some oftheir targeted slots being filled by the immigrants.

Research Questions in the Articles

Peri (2010) seeks to find out whether the presence of immigrants inthe United States affects employment and productivity.

Dustmann et al. (2012) conduct a study to find an answer to whetherimmigration has any significant on the wages of the native workers.

Card (2007) seeks to find out the effects of immigrants on the laboropportunities of the native and other older immigrants.

Hypotheses in the Articles

Peri hypothesizes that the presence of immigrants diminish theemployment opportunities tat would be enjoyed by the American-borncitizens

Card works to test the hypothesis that the inflow on new immigrantsinto the country is associated with lower rates of employment amongthe natives.

Dustmann hypothesizes that there is a positive effect on wages in thecountry die to immigration.

Internal validity of the research

The study conducted by Peri clearly demonstrates the precedence ofcause before the effect. The author looks at the inflow of immigrantsfrom 1994 to 2008 and the corresponding wages.4He also compares the average income per worker within the period. Heclearly demonstrates the co-variation between the presence ofimmigrants and effect on employment and productivity.

Card outlines the inter-city migration as well as immigration intothe country and its effects on labor outflows. He also demonstrateshow immigration affects the labor flows by collecting data for fiveyears on new immigrants within the cities and those from othercountries.5He then juxtaposes the trend to the labor structure and the makes aconclusion. His research is, therefore, valid.

However, the research conducted by Dustmann et al. has a weakinternal casualty. When discussing how immigrants affect employmentand productivity, they indicate that only affect the lower 20percentile due to their poor skills. However, they give room forplausible explanation that the effect could be a result of the lesserpay that immigrants get than the natives leading to a surplus in thejob market.

Dependent variable

Peri (2010) – U.S employment and productivity

Card (2007) – Local labor markets

Dustmann et al. (2012) – Distribution of wages

Although the dependent variables are not verbally similar, theyrevolve around employment of the Native Americans.

Construct Validity

The authors use a fairly a similar research design. In the threearticles, he authored use data collected over a given period to showthe inflow of immigrants and the consequent effects on theirdependent variables. Peri ensures that he measures the effects ofimmigrants rather than the effects of other factors he controlsanother variable including sector specialization, research spendingtechnology adoption among others. He then compares the economicoutcomes the states with high inflow of immigrants with those that donot have significant inflows. It is, therefore, easy and valid togeneralize the findings.

Card uses a series of wage equations to sample the native bornimmigrant male and female laborers and stratifies them into decilesof the predicted wage distribution. The results indicate thatimmigrant inflows only affect the wages of the natives to the extentof distorting the relative population shares in the different skillsgroups.6He applies the standard trade theory that implies that if eachindustry applies the same method of production, then the long-runresult will be the similar the assumption made in his design is thatorder in the specific groups has homogenous skills. Dustmann et al.use a theoretical approach revolving around the standard economictheory. The model does not restrict the number of industries that mayhave an objective of producing varied products.

Measuring the Variables

Peri uses correlation graphs to compare employment and income withthe increasing number of immigrants. Card uses a parallel analysisand a comparison of co-efficiency to measure the effects of increasedimmigrants on wage effects. Dustmann el al. applies the constantelasticity of substitution to determine the labor required for agiven amount of interested capital.

Relationship between the dependent and independent variable

The authors arrive at similar conclusion that immigration affects theemployment of the natives only to the extent of unskilled labor. Itis the segment referred by Card and Dustmann et al. as 20thpercentiles. The reason for this that those on te lower percentilehave similar skills with the immigrant laborers.

Dustmann et al. conclude that immigration depresses ages for thelaborers forming the lowest 20th percentile and, therefore, therelationship between the two variables is relatively positive. Cardalso concludes that in cities with immigrant depress the employmentrate of low-skilled workers. Peri concludes that the presence ofimmigrants does not occur at the expense of native workers in theUnited States. I find Peri’s conclusion better than the restbecause of the method used to should relationships. He demonstratesthe inflow of immigrants for 10 years and the corresponding changesin employment. The conclusion made from the relationship is credibleand easy to generalize.

References

Dustmann, Christian,Tommaso Frattini, and Ian P. Preston. &quotThe effect of immigrationalong the distribution of wages.&quot The Review of EconomicStudies 80, no. 1 (2013): 145-173.

Peri, Giovanni. &quotTheEffect of Immigrants on US Employment and Productivity.&quot FRBSFEconomic Letter 26 (2010): 1-5.

Card, David.Immigrant inflows, native outflows, and the local labor marketimpacts of higher immigration. No. w5927. National Bureau ofEconomic Research, 2007.

1 Peri, Giovanni. &quotThe Effect of Immigrants on US Employment and Productivity.&quot FRBSF Economic Letter 26 (2010): 2.

2 Card, David. Immigrant inflows, native outflows, and the local labor market impacts of higher immigration. No. w5927. National Bureau of Economic Research, 2007. 8.

3 Dustmann, Christian, Tommaso Frattini, and Ian P. Preston. &quotThe effect of immigration along the distribution of wages.&quot The Review of Economic Studies 80, no. 1 (2013): 146.

4 Peri, FRBSF Economic Letter, 3.

5 Card, National Bureau of Economic Research, 9.

6 Card, National Bureau of Economic Research, 9.