ABSTRACT
This chapter addresses both the more narrow empirical issues and the broader interpretative issues about immigration. It focuses on one possible response to immigration by native workers, labor force withdrawal. Labor force withdrawal is important in its own right since it directly reflects an economic loss and it weakens the attachment of low-wage native workers to the labor market. The chapter presents econometric evidence showing that immigration reduces the labor force participation of both African American and European American workers. It shows generally insignificant effects of immigration on unemployment, which supports the contention that participation effects tend to conceal the true impact of immigration on employment. The chapter uses data from the CPS Basic Monthly Survey, pooled over 1998–2002 to maximize sample size, to examine the impact of immigration on African American employment. It is generally accepted that immigration has negative economic consequences for low-wage workers in general and for African Americans in particular.
