The heterogeneous Impact of US Monetary Policy: Evidence from Native and Foreign-Born Workers
Abstract
This paper explores the heterogeneous effects of expansionary monetary policy on native-born and foreign-born workers in the United States from January 2007 to January 2024. Using high frequency data and local projections, we find that foreign-born workers benefit more significantly from expansionary shocks, with greater improvements in employment-population ratios, unemployment rates and labor force compared to native-born workers. Our results emphasize the importance of considering foreign-born workers in the decision making process of the Federal Reserve.
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