How do Existing Immigrants Respond to New Immigration? Evidence from the Age of Mass Migration
How do existing immigrants respond to new immigration? New arrivals may complement earlier immigrants or compete with them, especially when they share an origin. I study the effect of new immigration on the economic outcomes and assimilation of existing immigrants in the U.S. from 1900 to 1930 using a shift-share instrument and linked census records. Aggregate inflows have little effect on existing immigrants' occupational standing. Co-ethnic inflows, by contrast, lower incumbents' occupational rank and widen their gap with natives, with the largest losses where newcomers and incumbents hold similar occupations. Co-ethnic inflows also draw incumbents into the enclave, making them less likely to leave the county and more likely to give their children foreign names. These results highlight how the composition of new immigration shapes incumbents' labor market trajectories.