THE EFFECT OF IMMIGRATION ON AGGREGATE NATIVE UNEMPLOYMENT - AN ACROSS-CITY ESTIMATION

This study investigates the relationship between the rate of immigrati on into various cities in various years and the level and change in un employment. In pooled regressions, immigration lagged one year does no t show a statistically significant effect either by itself or when oth er lags are added. Individual regressions using the difference in unem ployment rates over time show a slight, but statistically insignifican t, positive displacement effect over two-year periods. The evidence in dicates that there is little or no observed increase in aggregate nati ve unemployment due to immigration, even in the relatively short run d uring which adjustment frictions should be most severe.