The Effect of Immigration on Convergence Dynamics in the US

Abstract

This paper analyzes the impact of immigration on the dynamics of the cross-sectional distribution of GSP per capita and per worker. To achieve this we combine different approaches: on the one hand, we establish via Instrumental Variable estimation the effect of the inflow of foreign-born workers on output per worker, employment and population; on the other hand, using the Distribution Dynamics approach, we reconstruct the consequences of migration flows on convergence dynamics across US states.