%0 Report
        %A Monras, Joan
        %T Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis
        %D 2015
        %8 2015 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 8924
        %U https://www.iza.org/index.php/publications/dp8924
        %X How does the US labor market absorb low-skilled immigration? I address this question using the 1995 Mexican Peso Crisis, an exogenous push factor that raised Mexican migration to the US. In the short run, high-immigration states see their low-skilled labor force increase and native low-skilled wages decrease, with an implied local labor demand elasticity of -.7. Internal relocation dissipates this shock spatially. In the long run, the only lasting consequences are for low-skilled natives who entered the labor force in high-immigration years. A simple quantitative many-region model allows me to obtain the counterfactual local wage evolution absent the immigration shock.
        %K local shocks
%K international and internal migration
%K local labor demand elasticity