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How do low-education immigrants adjust to Chinese import shocks? Evidence using English language proficiency

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  • Furtado, Delia
  • Kong, Haiyang
Abstract
This paper examines the link between trade-induced changes in local labor market opportunities and English language fluency rates among low-education immigrants in the United States. The production-based manufacturing jobs lost due to Chinese import competition around the turn of the century did not require strong English-speaking skills while many of the jobs in expanding industries, mostly in the service sector, did. Consistent with responses to these changing labor market opportunities, we find that a $1,000 increase in import exposure per worker in a local area led to an increase in the share of low-education immigrants speaking English very well in that area by about half a percentage point. As evidence that at least part of this is a result of actual improvements in English language speaking abilities, we show that low-education immigrants in trade-impacted areas became especially likely to be enrolled in school compared to similarly low-education natives. While we find some evidence for domestic migration in response to trade shocks, we also show that our results are not likely to be driven by language-selective internal migration or initial settlement decisions.

Suggested Citation

  • Furtado, Delia & Kong, Haiyang, 2024. "How do low-education immigrants adjust to Chinese import shocks? Evidence using English language proficiency," European Economic Review, Elsevier, vol. 163(C).
    • Handle: RePEc:eee:eecrev:v:163:y:2024:i:c:s0014292124000102
    DOI: 10.1016/j.euroecorev.2024.104681
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    More about this item

    Keywords

    Immigrants; Language fluency; Import competition; Immigrant assimilation;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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