The Adverse Effect of the Covid-19 Labor Market Shock on Immigrant Employment

25 Pages Posted: 26 May 2020 Last revised: 5 Jun 2020

See all articles by George J. Borjas

George J. Borjas

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Hugh Cassidy

Kansas State University

Multiple version iconThere are 2 versions of this paper

Date Written: May 2020

Abstract

Employment rates in the United States fell dramatically between February 2020 and April 2020 as the repercussions of the COVID-19 pandemic reverberated through the labor market. This paper uses data from the CPS Basic Monthly Files to document that the employment decline was particularly severe for immigrants. Historically, immigrant men were more likely to be employed than native men. The COVID-related labor market disruptions eliminated the immigrant employment advantage. By April 2020, immigrant men had lower employment rates than native men. Part of the relative increase in the immigrant rate of job loss arises because immigrants were less likely to work in jobs that could be performed remotely and suffered disparate employment consequences as the lockdown permitted workers with more “remotable” skills to continue their work from home. Undocumented men were particularly hard hit by the pandemic, with their rate of job loss far exceeding the rate of job loss of legal immigrants.

Suggested Citation

Borjas, George J. and Cassidy, Hugh, The Adverse Effect of the Covid-19 Labor Market Shock on Immigrant Employment (May 2020). NBER Working Paper No. w27243, Available at SSRN: https://ssrn.com/abstract=3609696

George J. Borjas (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-1393 (Phone)
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National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Hugh Cassidy

Kansas State University ( email )

Manhattan, KS 66506-4001
United States

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