Analyzing Immigrant Pay Gaps & the Policies That Influence Them

Despite making up 14% of the US population, little research has been done on pay gaps for immigrants, the majority of whom are Latin American immigrants. I analyze the effect of immigration on immigrants’ wages, specifically looking at the effects of region of birth, citizenship, and state immigration policies. I find that even when compared to natives with similar education, Latin American immigrants earn significantly less. Furthermore, while noncitizens earn less than natives and naturalized citizens earn more overall, Latin Americans face a larger penalty for noncitizenship and lower returns to citizenship. Finally, while living in Sanctuary and Anti-Sanctuary States do affect immigrants’ income, these policies are not the causal effects of the gaps, suggesting the overall sentiment towards immigrants is more impactful.