How do Existing Immigrants Respond to New Immigration? Evidence from the Age of Mass Migration
How do existing immigrants respond to new immigration? New immigrant waves create competing pressures: they can accelerate assimilation, as earlier arrivals seek to differentiate themselves from newcomers, or hinder assimilation by increasing its costs. This paper studies the effect of new immigrant inflows on the economic assimilation of existing immigrants in the U.S. from 1900–1930. Using a shift-share instrument and linked census records, I estimate the effects of new inflows on existing immigrants' labor market outcomes. Aggregate inflows have no effect on the occupational standing of the first generation and lower it modestly for the second, while co-ethnic inflows have large negative effects on both generations through within-group labor market competition and by strengthening ties to the enclave through marriage and homeownership. As a result, existing immigrants fail to close the gap with natives and economic assimilation slows. These results highlight how continued immigration shapes the labor market trajectories of existing immigrants.