Replication data for: Immigrants' Labor Supply and Exchange Rate Volatility

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Project Citation:

Nekoei, Arash. Replication data for: Immigrants’ Labor Supply and Exchange Rate Volatility. Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113865V1

Project Description

Summary: Are an immigrant's decisions affected in real time by her home country's economy? I examine this question by exploiting exchange rate variations as exogenous price shocks to immigrants' budget constraints. I find that in response to a 10 percent dollar appreciation, an immigrant decreases her earnings by 0.92 percent, mainly by reducing hours worked. The exchange rate effect is greater for recent immigrants, married immigrants with absent spouses, Mexicans close to the border, and immigrants from countries with higher remittance flows. A neoclassical interpretation of these findings suggests that the income effect exceeds the cross-substitution effect. Remittance targets offer an alternative explanation.

Scope of Project

JEL Classification:
      F24 Remittances
      F31 Foreign Exchange
      J22 Time Allocation and Labor Supply
      J61 Geographic Labor Mobility; Immigrant Workers

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V1 [2019-10-12]

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