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The Labor Market Effects of Mexican Repatriations: Longitudinal Evidence from the 1930s

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... As LAWA shrinks the low-skilled immigrant workforce in Arizona, there is less incentive for natives to specialize in occupations that require higher communication skill. Similarly, recent work by Lee et al. (2019) also found evidence of U.S. natives' occupational downgrading following Mexican repatriations in the 1930s. ...
... It is worth noting that the findings presented in this study may not necessarily contradict the work of Cortes (2008) and Cortes and Tessada (2011). Recent studies have argued that the labor market effects of an increase of low-skilled immigrants might not be symmetric as reducing it through immigration restriction policy (Clemens et al., 2018;Lee et al., 2019). This paper also contributes to the literature that examines the impact of interior immigration enforcement policy; in particular, the universal E-Verify mandate. ...
... to Lee et al. (2019) who also found evidence of occupational downgrading by U.S. natives following Mexican repatriations in the 1930s. 14 ...
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Low-skilled immigration has been argued to lower the price of services that are close substitutes for household production, reducing barriers for women to enter the labor market. Therefore, policies that reduce the number of low-skilled immigrants who work predominantly in low-skilled service occupations may have an unintended consequence of lowering women's participation in the labor market. This article examines the labor supply impact of the Legal Arizona Workers Act (LAWA), which led to a large decline of the low-skilled immigrant workforce in the state. The analysis shows no evidence that LAWA statistically significantly affected U.S.-born women's labor supply in Arizona. This finding is partly explained by an increase of native workers in household service occupations due to LAWA, which offset the decline of immigrants in these occupations and caused the cost of household services to be relatively uninfluenced by the passage of LAWA.
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