Brian C. Cadena

Human Capital and the Lifetime Costs of Impatience

In this paper, we examine the role of impatience in human capital formation—arguably the most important investment decision individuals make during their lifetimes. We focus on a set of investment behaviors that cannot be explained solely by variation in exponential discounting. Using data from the NL SY and a straightforward measure of impatience, we find that impatient people more frequently invest in dynamically inconsistent ways, such as dropping out of college with one year or less remaining. The cumulative investment differences result in the impatient earning 13 percent less and expressing more regret as this cohort reaches middle age. (JEL D91, I26, J24, J31)

Native Competition and Low-Skilled Immigrant Inflows

This paper demonstrates that immigration decisions depend on local labor market conditions by documenting the change in low-skilled immigrant inflows in response to supply increases among the US-born. Using pre-reform welfare participation rates as an instrument for changes in native labor supply, I find that immigrants competing with native entrants systematically prefer cities with smaller supply shocks. The extent of the response is substantial: for each native woman working due to reform, 0.5 fewer female immigrants enter the local labor force. These results provide direct evidence that international migration flows tend to equilibrate returns across US local labor markets.

Chapter 22 - The Labor Market Integration and Impacts of US Immigrants

Abstract Over the last several decades, two of the most significant developments in the US labor market have been: (1) rising inequality, and (2) growth in both the size and the diversity of immigration flows. Because a large share of new immigrants arrive with very low levels of schooling, English proficiency, and other skills that have become increasingly important determinants of success in the US labor market, an obvious concern is that such immigrants are a poor fit for the restructured American economy. In this chapter, we first place this concern in context by briefly describing the history of US immigration policy and immigrant flows. We then evaluate the concern by discussing evidence for the United States on three relevant topics: the labor market integration of immigrants, the socio-economic attainment of the US-born descendants of immigrants, and the impact of immigration on the earnings and employment opportunities of native workers. We show that immigrants have little trouble finding paid employment and that the wages they earn are commensurate with their skills. Overall, the US-born second generation has achieved educational parity with mainstream society; for some Hispanic groups, however, this is not the case. Finally, we survey the pertinent academic literature and conclude that, on the whole, immigration to the US has not had large adverse consequences for the labor market opportunities of native workers.

Measuring Geographic Migration Patterns Using Matrículas Consulares

In this article, we show how to use administrative data from the Matrícula Consular de Alta Seguridad (MCAS) identification card program to measure the joint distribution of sending and receiving locations for migrants from Mexico to the United States. Whereas other data sources cover only a small fraction of source or destination locations or include only very coarse geographic information, the MCAS data provide complete geographic coverage of both countries, detailed information on migrants’ sources and destinations, and a very large sample size. We first confirm the quality and representativeness of the MCAS data by comparing them with well-known household surveys in Mexico and the United States, finding strong agreement on the migrant location distributions available across data sets. We then document substantial differences in the mix of destinations for migrants from different places within the same source state, demonstrating the importance of detailed substate geographical information. We conclude with an example of how these detailed data can be used to study the effects of destination-specific conditions on migration patterns. We find that an Arizona law reducing employment opportunities for unauthorized migrants decreased emigration from and increased return migration to Mexican source regions with strong initial ties to Arizona.