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on Demographic Economics |
| By: | Benjamin S. Kay; Albina Khatiwoda |
| Abstract: | This study examines the demographic characteristics of U.S. state border counties, comparing them with those of nonborder counties. The demographic representativeness of border counties is essential for the interpretation of the results in state border-county difference-in-difference analyses, used in state policy evaluations. Our findings reveal that border counties generally have higher proportions of White, older, and disabled populations. We also see occasional instances of wide demographic differences across state boundaries. These differences potentially undermine the external validity and identification of policy evaluations. We illustrate the implications of these finding through a case study, highlighting the need for robustness checks and demographic considerations in border-county policy research. |
| Keywords: | Demographics; Difference-in-Difference Estimates; Event Studies; Natural Experiments; Policy Experiments; US state border counties |
| JEL: | D78 J15 C21 C23 |
| Date: | 2025–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-18 |
| By: | Dodini, Samuel (Federal Reserve Bank of Dallas); Willén, Alexander (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | This paper examines the relationship between labor market power and employer discrimination, providing new causal evidence on when and where discriminatory outcomes arise. We leverage job displacements from mass layoffs and firm closures as a source of exogenous job search and combine this with an exact matching approach. We compare native–immigrant worker pairs who held the same job at the same firm, in the same occupation, industry, location, and wage prior to displacement. By tracking post-displacement outcomes across labor markets with differing levels of employer concentration, we identify the causal effect of labor market power on discriminatory behavior. We document four main findings. First, wage and employment discrimination against immigrants is substantial. Second, discrimination is amplified in concentrated labor markets and largely absent in highly competitive ones. Third, product market power has no independent effect, consistent with the idea that wage-setting power is necessary for discriminatory outcomes. Fourth, observed gaps fade with sustained employer–immigrant interactions, consistent with belief-based discrimination and employer learning. Together, these findings show that discrimination is not fixed, but shaped by market structure and firm-level dynamics. |
| Keywords: | Discrimination; Immigration; Market Power |
| JEL: | J17 J42 J61 J63 |
| Date: | 2025–04–07 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2025_010 |