Low-Skilled Immigration and the Labor Supply of Highly Skilled Women

Patricia Cortés, José Tessada
2011 American Economic Journal: Applied Economics  
Low-skilled immigrants represent a signi...cant fraction of the labor employed in service sectors that are close substitutes of household production like housekeeping and babysitting services. This paper studies whether the increased supply of low-skilled immigrants has led high-skilled women, who have the highest opportunity cost of their time, to change their time use decisions. Exploiting cross-city variation in immigrant concentration, we ...nd that low-skilled immigration has increased
more » ... s worked by women with a professional degree or a Ph.D. The estimated magnitudes suggest that the low-skilled immigration ‡ow of the period 1980-2000 increased by approximately 45 minutes a week the average time of market work of women belonging to this group. We also ...nd that the fraction of highly educated women working more than 50 (and 60) hours a week increases with low-skilled immigration. Consistently, we ...nd a decrease in the time women in this education group spend in household work and an increase in their reported expenditures on housekeeping services. Except for smaller but signi...cant e¤ects on the probability of women with a college education or masters degree working long hours, there is no evidence of similar e¤ects for any other education group of the female population.
doi:10.1257/app.3.3.88 fatcat:4f7eyll6mnfoplb6y265b2ez3u