Big City Labor Markets and Immigrant Economic Performance

Franklin J. James spent much of his career working to understand and improve our metropolitan communities. His interests were varied, ranging from impacts of fiscal and economic distress on urban areas to understanding socioeconomic forces reviving our central cities. During the last several years, Professor James had turned his attention to examining the positive economic impacts immigrants and ethnic communities have for reinvigorating our central cities-and beginning to investigate how non-native American's will impact America's suburbs in metropolitan settings
This preliminary exploration examines destination choices of immigrants, the characteristics of immigrant labor markets, and the determinants of immigrant earnings. The article begins to explore indirect evidence on the economic efficiency with which immigrants and native workers distribute themselves within and among labor markets as well as the assimilation process facing new immigrants. Evidence is presented to explain how the earnings of recent immigrants are affected by their human capital characteristics, their race, and ethnicity, and other factors. We reject the hypothesis that immigrants participate in a tertiary sector of urban labor markets and conclude that the determinants of immigrant earnings are similar enough to those of U.S. natives that it makes sense to assume that they work in the same primary labor market in which most native White Americans work. We find that urban labor markets for immigrants are surprisingly efficient, thus enabling immigrants to take advantage of economic opportunities. A major exception concerns what appears to be a powerful effect of discrimination on the economic progress of Black immigrants.