TY  - RPRT
        AU  - Monras, Joan
        TI  - Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis
        PY  - 2015/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8924
        UR  - https://www.iza.org/index.php/publications/dp8924
        AB  - 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.
        KW  - local shocks
KW  - international and internal migration
KW  - local labor demand elasticity
        ER  -