Immigration and Gender Differences in the Labor Market

Abstract

This paper analyzes the effect of immigration on gender gaps. Using an equilibrium structural model for the US economy, I simulate the importance of two mechanisms: the differential increase in labor market competition from immigration on male and female workers and the availability of cheaper childcare services. Aggregate effects on gender and participation gaps are negligible. Females are more negatively affected by labor market competition, but the availability of cheaper childcare compensates for these effects. This generates heterogeneity in the effects along skill distribution: gender gaps are increased at the bottom and reduced at the top. Human capital adjustments are also heterogeneous.