Impact of Immigrant-Driven Services on the Labor Supply of High-Skilled Native Women

Abstract Previous research has proved that low-skill immigration impacts the labor supply of high-skilled native women; however, insufficient attention is paid to the sectors where these immigrants bring significant influence. This paper analyzes service sectors that heavily depend on less educated immigrants: maids and housekeeping cleaners, food preparation and serving, and childcare. These service sectors are focused on because they alleviate household responsibilities that women typically spend a large amount of time on. Using U.S. Decennial Census data from 1980 to 2000, the study found that the inflow of low-skill immigrants into these service sectors tends to lower wages for workers with similar education levels, thereby reducing service costs. These more affordable services enable highly skilled native women, especially those with young children under age 5, to provide more labor supply in the labor market. Therefore, low-skill immigrants play an indirect but important role in supporting the careers of high-skilled native women and thereby increasing the overall labor supply by influencing the labor structure in these targeted service sectors. JEL classifications J12, J16, J31, J61