By John M. Abowd, Richard B. Freeman
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Extra resources for Immigration, Trade, and the Labor Market
Sample text
S. S. S. S. S. S. 6 Sources: Survey of Current Business, “Benchmark Survey of Foreign Direct Investment in the United States, 1974” (May 1976). S. Department of Commerce (1983), Foreign Direct Investment in the United States, 1980. S. Affiliates of Foreign Companies: 1987 Benchmark Survey Results” (July 1989). S. shipments and employment data from Survey of Current Business, various issues. S. S. affiliates in 1980, 1987. bManufacturingindustries only, thousands of dollars per employee. ‘Agriculture, mining, and manufacturing only.
Two additional points about this more general model are worth stressing. First, the importance of variable migration costs in the analysis will diminish greatly if the variance in migration costs is relatively small compared to the variance in the income distributions. Second, regardless of how important migration costs are, the key result that negative selection is more likely from countries with high levels of income inequality and positive selection is more likely from countries with more equal income distributions is unaffected.
The author is grateful to Richard Freeman for many helpful discussions of the ideas presented in this paper, to Charles Brown for insightful suggestions and comments, and to Bemt Bratsberg for excellent research assistance. He is also grateful to the National Science Foundation (grants SES-8604973and SES-8809281) and to the National Institute of Child Health and Human Development (grant R01-HD22344) for financial support. 29 30 George J. Borjas abilities or skills) from more recent waves. S. Censuses.