Changes in international immigration and internal native mobility after COVID-19 in the USA

Abstract

The COVID-19 pandemic produced a significant decline in international immigration to the USA between 2020 and 2021. This paper documents the timing, characteristics, and heterogeneity of the change in immigration across states and economic sectors. Additionally, we describe the trends in internal native mobility in the USA prior to and after the pandemic, investigating whether natives responded to the decrease in immigration by relocating either geographically or across sectors. Despite the substantial drop in international migration, we do not observe any significant changes in native internal mobility. Employing a panel regression and a shift-share IV, we study the effect of foreign immigration, the emergence of remote-work, and changes in labor demand on cross-state native mobility. Our results indicate that the decline in immigration following COVID-19 and the differential availability of remote-work opportunities across sectors and states did not drive changes in natives’ cross- state or cross-sector mobility.