Vietnamese Manicurists
Transcription
Vietnamese Manicurists
Vietnamese Manicurists: Are Immigrants Displacing Natives or Finding New Nails to Polish? Author(s): Maya N. Federman, David E. Harrington, Kathy J. Krynski Source: Industrial and Labor Relations Review, Vol. 59, No. 2 (Jan., 2006), pp. 302-318 Published by: Cornell University, School of Industrial & Labor Relations Stable URL: http://www.jstor.org/stable/25067522 Accessed: 05/01/2010 19:08 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. 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FEDERMAN, many research Although economic natives' tion in 1987-2002, the total number increase in that that immigrants has immigration outcomes in California of manicurists over the who entered appears displacement of non-Vietnamese the number of for natives. current Some economists, these concerns. however, The does result not period, market, to have been this (35,500). authors two non-Vietnamese Over the data for that estimate were for dis to a reduction due rather occupation ques influx exceeded Using the primarily the than in an to it. leaving more of a deep gulf?actually and the chasm?dividing public opinion from academic studies" findings (Borjas This disagreement 1999:62). may emanate in part from a difference in focus, with "wide economists concentrating reduce the migrants on overall im whether employment rates of natives, while is pre the public take concerned that dominantly immigrants away specific jobs. support been the entering manicurists Ameri has in 1987 16-year the cans believe that immi they do, worrying from native workers. take grants jobs away evidence Most of the empirical produced by most workers, on adverse effect native no a in the de of the central questions over is bate policy One immigration affect labor whether adversely immigrants market displace or little KRYNSKI* outcomes. of areas 34 metropolitan five Vietnamese every This placed. the number believe people finds and KATHYJ. to An unusual opportunity explore labor market is afforded defined narrowly by into California's market for manicurists. immigrants new entrants the number of these (35,700) slightly employment the context of Vietnamese years E. HARRINGTON, DAVID a We ese estimate manicurists from 1987 of Econom isAssistant Professor *Maya Federman ics at Pitzer College, and David Harrington and Kathy are Associate at of Economics Professors Krynski thank W Bowman The authors Kenyon College. Linus Cutter Levine, IV, David Woodbury, Stephen at Claremont and members of the workshops Yamane, for rate the manicurists at which Vietnam non-Vietnamese displaced over the 16 years in California to 2002. The California market manicurists makes an case interesting and College Clemson University, College, for helpful They also thank suggestions. of Consum Rick Lopes of the California Department ers Affairs of for information about the licensing the financial manicurists. support They appreciate in Chair by the J. and Paul G. Himmelright provided at Kenyon and research funds Economics College McKenna and Pitzer College by Claremont provided can be purchased of Consumer Affairs, Department Public Information 400 R Street, Suite 2000, Unit, CA 95814. of the Stata programs Sacramento, Copies to generate in the paper used the results presented are available from David E. Harrington, Department College. of Economics, McKenna of Wooster Industrial and Labor Relations Review, Vol. data Licensing from the California 59, No. 2 (January 0019-7939/00/5902 302 $01.00 on manicurists Kenyon 2006). ? College, by Cornell Gambier, University. OH 43022. VIETNAMESE MANICURISTS 303 70,000 0 J_I_I_I_I_I_I_I_I_I_I_I_I_I_I_L 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Figure 1. California Manicurists, study for several reasons. First, manicurists are easier to track than most other types of low-skilled labor because they are required to be licensed. For this study, we use infor from of mation the licensing records who held a California 121,761 manicurists license in any of the years from 1987 to name records together 2002. The detailed names of Vietnamese with the uniqueness allow us to accurately identify Vietnamese manicurists. Second, the number of Vietnamese mani curists increased tenfold over the years of our sample, from 3,900 in 1987 to 39,600 in the num 2002 (see Figure 1). In contrast, ber of non-Vietnamese manicurists grew for a few years and then steadily declined, from 31,600 in 1987 to 27,300 in decreasing of mani 2002. As a result, the composition curists changed dramatically, with the pro Vietnamese 10% in portion rising from 1987 to 59% in 2002. The total number of manicurists also increased substantially over in the years of our sample, from 35,500 for popu 1987 to 66,800 in 2002. Adjusting lation growth, the total number of mani curists grew from 1 manicurist per thou in 1987 to 1.45 per thousand sand residents 1987-2002. in 2002, an increase that ismore than three in real per capita times the 12% increase income. rates using estimate We displacement areas in annual data for 34 metropolitan over the 16 years from 1987 to California sources of 2002. We correct for potential the Vietnam that bias, including possibility ese manicurists were replacing, not displac ing, non-Vietnamese manicurists, using in from previ tercity supply shocks resulting ethnic enclaves and from ously established the introduction of a Vietnamese language exam in 1996. The version of the licensing licensing data also allow us to characterize as stemming the displacement primarily from either inflows exit of discouraging into manicuring non-Vietnamese non-Vietnamese or hastening the manicurists. the estimates Like produced by most other empirical studies of the labor market ours are based on impact of immigration, comparisons. cross-metropolitan However, we estimate on a the effect of immigration narrower much labor market than have other studies, which have usually compared na the employment levels of low-skilled tives across metropolitan areas with differ INDUSTRIAL AND LABOR RELATIONS REVIEW 304 or different immigrant populations Most of these inflow histories. immigrant of studies have found little or no evidence is be effects. This puzzling displacement cause it appears to be inconsistent with the of demand standard model and supply un der the reasonable that de assumptions is less than perfectly elastic and na mand in tive labor supply is less than perfectly ent elastic. the focus to a single occupa Narrowing to yield tion might be expected reasonably more of displacement, evidence especially of the increase in the magnitude given supply caused by the entry of Vietnamese in California. On the other manicurists hand, demand may be quite elastic. More over, Vietnamese immigrants appear to have in the been for innovations responsible of manicures, marketing such as stand-alone the nail salons, that may have increased for manicurists demand and thus damp effect. Our hope is ened the displacement that documenting the changes that have in the market for manicurists will occurred on of shed the studies light why puzzle help find little or no of broader labor markets of displacement effects. evidence The Economic Economists Theory use a of theoretical to describe the likely effects of im on the market labor opportuni migration of native workers. The standard text of demand and supply implies book model in the supply of immi that an increase of natives the number grants will reduce derived the (1980) Johnson employed. effect, dem displacement corresponding occurs that more displacement onstrating as native labor supply becomes more elastic less elastic. Altonji becomes and demand a more com and Card (1991) developed and immi allows natives model that plex to be complements in production grants the demand of immi and also incorporates The for locally produced grants goods. to have former feature causes immigrants an ambiguous of effect on the employment natives and the latter feature dampens the effect. displacement and Vietnamese into immigrants manicurists ap textbook model complex model seems unneces manicur native in production ists are close substitutes and ' sdemand for manicures women Vietnamese is a very small component of the overall economic demand.1 Hence, theory implies manicurists should have that Vietnamese non-Vietnamese unambiguously displaced over manicurists the past years twenty un was perfectly less demand How elastic. were if demand the ever, fairly elastic, amount of displacement would be much less one than namese one. for manicurists In appear Viet addition, to have intro duced innovations that several marketing for mani the demand may have increased lessen the dis curists, which would further effect. placement Vietnamese have manicurists Many nail salons by started their own stand-alone or seeking advice from money borrowing members and friends, many of whom family to help also own salons and are willing them start similar businesses (Badie 1999). the shift toward stand-alone Indeed, (often years ated models ties since sary nail discount) of Displacement variety The entry of Vietnamese market for the California for tailor-made the pears of immigration. The more and Card (1991) of Altonji appears with the salons to be entrance over an the twenty associ past innovation of Vietnamese mani curists (Dang 1999). These new salons may increase for manicures the demand (and, hence, manicurists) vices by and by reducing walk-in service at new offering ser time costs via quick convenient locations.2 In his profile of aVietnamese manicurist, jour that nalist William Booth (1998) argued she "is the kind of immigrant who does not interviewed Vietnamese manicur (1996) ^uynh in the mid-1990s and found that ists in Los Angeles were or other few of their customers Vietnamese Asian Americans. a model similar (2003), 2Angrist and Kugler using to that of Altonji showed that the and Card (1991), ef the displacement entry of new firms will reduce is tied to the entry of these new firms fect. However, the increase rectly, through in the supply of lower wages. immigrants only indi 305 VIETNAMESE MANICURISTS so much compete new creates but the against economic native-born possibilities," having started her own nail salon within an immi industry "built largely by Vietnamese The grants." of Vietnamese entry manicur ists also may have increased for the demand are a fashion trend, ifmanicures manicures in demand increases cascading exhibiting consumers were who sparked by originally attracted by a lower price.3 The idea that inflows may the de increase immigrant mand for low-skilled labor via mechanisms other than lower wages has been discussed as a possible for explanation cross why rarely find that metropolitan comparisons low-skilled natives immigrants displace (Train 2003). One would expect that analyzing such a as manicur defined narrowly occupation ing should increase the observed displace ment to induce since it is easier effect, to switch occupations native workers than to leave the work or force an to migrate area. It is possible, metropolitan or no little will that however, displacement if either the demand for mani be observed cures is very elastic or the entry of Vietnam other ese manicurists increased like novations the in via demand stand-alone nail 9which variables, X explanatory rate and per the unemployment come in error term, servable We estimate market for manicurists the residents over on (Nmt) manicurists per for observations (Vmt) using areas metropolitan v / (1) 1,000 re by non-Vietnamese of Vietnamese 1,000 residents cation of number per number rate in the manicurists time. Our specifi is N t +X'amt + SV mt +e mt, area m in year t. This for metropolitan and includes specification metropolitan a vector of and fixed and X effects, year vt, and Welch 3Bikhchandani, Hirshleifer, (1998) in the price of an experience that a decrease argued as cascade, good may start a positive raising demand the fashion imitate choices of others. people year. over of unob that vary within Nmt We time. esti also a specification the met that replaces number of fixed the effects with ropolitan manicurists in residents 1987 1,000 (an per indicator for initial tastes) and the initial area. All of of the metropolitan population mate our are regressions estimated using least squares with weights weighted to the population of the metropolitan equal ar eas. Our of 8 will estimate namese manicurists and be biased native if Viet manicurists were areas that both drawn tometropolitan increases in the unobserved experienced over the years from for manicures demand 1987 to 2002. The estimated displacement effect will be too small (in absolute value) if of Vietnamese in the number manicurists correlated with (1) is positively equation error term to unobserved due were that areas over demand metro within occurring time. In this case, we a smaller displacement ef would observe fect because cities with many Vietnamese manicurists also would manicurists. have the However, native many number of na even tive manicurists would have been not entered had the Vietnamese greater the market. Our estimate Vietnamese mt=X m +v of areas metropolitan politan the displacement California the gressing Specification each effect the captures e^, determinants shocks Empirical area metropolitan rate is measured The displacement by 8, in the number which is the change of non Vietnamese manicurists due to the entry of an additional Vietnamese manicurist. The the salon. the includes in capita of 8 will also be biased were manicurists areas metropolitan due if to drawn to unobserved de creases in the supply of native manicurists. In this case, the estimate will be too large were re if Vietnamese (in absolute value) no to be natives who wanted placing longer manicurists. The supply of native mani curists may have exogenously decreased over the last few decades as better alter natives example, police women became the officers, increased to women. available share and of mail over real estate carriers the years For agents, are who of our INDUSTRIAL AND LABOR RELATIONS REVIEW 306 If these supply shocks varied sample.4 areas over time, then within metropolitan the estimate of the displacement effect will In this case, many of the be too large. natives displacing, to be were manicurists Vietnamese not replacing, no who wanted longer manicurists.5 sources We can correct for these potential of bias with instrumental variables that help in the number of Viet the variation explain namese are but manicurists of native enous In manicurists. we instruments, use variation: Vietnamese our constructing sources of two variation across enclaves uncorrelated in both the de the labor supply with unobserved changes mand for manicurists and exog in the size of metropolitan areas in 1980, and the introduction of the Vietnamese language version of the licens ing exam in 1996. were enclaves Vietnamese estab largely immi lished by the first wave of Vietnamese States be the United grants who entered tween 1975 and 1978.6 Their initial place ment was dictated the federal by policy of to be dispersing refugees, causing groups in the all with states, fifty placed largest to California (21%). How going of had relocated these ever, many refugees 1980 These first-wave (Gordon 1987). by to be tended Vietnamese immigrants middle-class urban residents who were bet ter educated in and more likely to be fluent waves To than later (Hung 1985). English the extent that their relocation decisions were condi market influenced labor by that these conditions tions, it is unlikely unobserved would be correlated with or in manicurists the for demand changes in the native manicurists' later pe supply number riod. Figures 2a and 2b reveal that the trends in the number of Vietnamese and non manicurists resi Vietnamese 1,000 (per across metro were very different dents) areas with and without in enclaves politan as areas are defined 1980. Metropolitan an enclave if the density of their having was in 1980 Vietnamese larger population than the median density of 0.7 Vietnamese across all 34 metropoli per 1,000 residents tan areas. the number ists were and 51.1%, increased 32.6%, by 14.9%, 4They over 1988 to 2002 the years from (Em respectively, 1990 and January 2003), ployment and Earnings, January that are part of a longer process of occupa changes tion desegregation and (Blau, Simpson, by gender Anderson 1998). inflows on the 5Studies of the effect of immigrant such as Filer of natives, and Card outflows (1992) assume flee from cities that natives (2001), usually experiencing large inflows of immigrants. that evidence (2000) presented Jaeger are more in metropolitan likely to locate numbers of natives, implying declining with tion may run in the other direction, However, tinued exodus rather a trickle in Southeast warfare of several hundred from Vietnam another spike between in Vietnamese Asia led to the mass thousand boat people to 1978 and 1980, leading immigration. the surprisingly, of number of also manicur non-Vietnamese very across different the two areas, with the de groups of metropolitan earlier and being more cline beginning areas with in pronounced metropolitan enclaves. larger ber of Vietnamese The increase manicurists in the visibly num accel of a Vietnam erated after the introduction ese language version of the licensing exam areas in 1996, especially in metropolitan the with Vietnamese enclaves.7 However, immigrants areas with that causa immigrants than displacing natives. entered of Vietnamese immigrants 6Only to the end of the Vietnam the United States prior a year over the less than a thousand War, averaging two decades. As the war ended in 1975, the preceding turn U.S. government evacuated 125,000 Vietnamese, The flood into a flood. for a subsided ing the trickle in Vietnam turmoil and con few years until political replacing Not was higher and had manicurists Vietnamese amuch areas steeper trend inmetropolitan The trends in with Vietnamese enclaves. have 7The supply increased of Vietnamese around this manicurists also might due to the Personal time and Work Opportunity Reconciliation Responsibility federal Act of 1996, which eliminated (PRWORA) dur welfare subsidies for post-enactment immigrants in the United States. Borjas ing their first five years in California reduced that immigrants found (2002) after 1996 even though California their use of welfare In this most benefits. of their lost welfare replaced the differential also capture instruments case, our across metro reform supply shocks caused by welfare areas with different-sized enclaves. Vietnamese politan VIETNAMESE MANICURISTS 307 2.5 2.0 - 4-4- - - Total 1.5 1.0 Non-Vietnamese Vietnamese Trend 0.5 Vietnamese J_L J_I_I_I_I_I_I_I_I_I_I_I_L 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Figure 2a. California MSAs with Vietnamese Enclaves. 2.5 2.0 0.5 Vietnamese etnamese A i A i A l Az i * Trend A ) 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Figure decrease in the number 2b. California MSAs of non-Vietnamese does not appear manicurists after 1996. accelerated Our first-stage specification to have visibly is without Vietnamese (2) Vm, Enclaves. = + + + xm V( X>J> Yl(VEnclave^ + + Y2(VExami VEnclave^,,) Y3(VExam(VEnclavem80T)+^/) T) 308 INDUSTRIAL AND LABOR RELATIONS REVIEW where V mtt is the number of Vietnamese manicurists per 1,000 residents, im and \|/ are and year fixed effects, metropolitan unem and Xmt includes the metropolitan rate and income. per capita ployment VEnclave of Vietnamese on is the number in the metropolitan per 1,000 residents area in 1980; is an indicator vari VExam^ exam was able for whether the licensing in Vietnamese available in year t; and T is a time trend. We expect the trend in the number of to be higher Vietnamese manicurists and areas in metropolitan that had steeper in 1980. While enclaves larger Vietnamese the metropolitan fixed effects capture the in levels, y measures difference the in crease in the slope of the trend line due to We enclaves. larger ing the licensing cause the trend become steeper be more should tan areas While with also statewide offer will and thereafter, that changes in metropoli pronounced Vietnamese larger the year fixed any that expect exam in Vietnamese to shift up in 1996 effects changes, y2 enclaves.8 should and y3 capture measure in the upward shift and changes differences in slope across metropolitan areas with dif ferent-size Our and stage regression. recent studies (Borjas 2003; Card have also sought 2001; Friedberg 2001) better estimates of wage and employment effects by narrowing the definition of labor a markets, though they have not examined Several as market strategy empirical follows the evolu defining labor markets more narrowly. studies of the labor market effects of use instrumental to variables immigration effects. Start identify wage and employment and Card (1991), many ing with Altonji studies 1992; Pischke (Card 2001; Hunt and Veiling and 1997; Winter-Ebmer Zweimuller 1996, 1999) have used the ini tial size of immigrant enclaves as an instru ment in the number for changes of immi over time later the While grants periods.9 Data should increase with enclave size both are more Vietnamese living there and a because contain ethnic enclaves disproportionate share of immigrants who do not speak English well. distribu (2001) used the occupational 9Friedberg in their home as an instru tion of immigrants country ment and Angrist and Kugler used the dis (2003) tance traveled to escape wars. that for manicurists. Description The California Department of Consumer us with information on all Affairs provided who held a license in 121,761 manicurists the state at any time from 1987 to 2002. The information their full names, includes home addresses, license and numbers, the issue and expiration dates (month and year) of their licenses. We identified Vietnamese manicurists the names of the by comparing manicurists in our sample with common Vietnamese that is names, using a process in the appendix. described It is relatively to identify straightforward Vietnamese First, 8The effect there because as narrow are a diverse group with Since immigrants a variety of skills and each occupations, wave of immigrants affects a variety of labor a pattern of shocks that markets, creating on the of their skills. distribution depends Several of these studies have found employ ment effects of immigrant inflows on na tives, ranging from "modest" (Card 2001:58) to "sizable" In con (Borjas 2003:1370). trast, older studies (summarized by Borjas and Hunt [1994] and Friedberg [1995]) re found little evidence that immigrants rate of natives. duce the employment enclaves. tion of strategies in the larger literature on variables immigration by using instrumental Most initial size of Vietnamese is a com enclaves the fact that it is ponent of our instruments, interacted with a time trend and an indica tor variable for a licensing policy change allows us to include the full set of metro and year fixed effects in our first politan for manicurists Vietnamese names several are very reasons. distinc tive. Second, many of the California records have more than one name listed in the first name field, and middle giving us names such as Hoang Thi Le Ngan and Huong a small number Smith. of Third, Nguyen last names are shared by large numbers of Vietnamese. For example, 10% of the mani curists in the sample (and 28% of the Viet VIETNAMESE MANICURISTS Table 1. for Vietnamese Means Sample and Non-Vietnamese Manicurists, Non-Vietnamese Vietnamese Characteristic 0.988 Immigrant 0.323 (0.469) (0.108) Years in U.S. Wage (dollars Hours Week per for 13.46 Immigrants per 16.66 10.51 hour) (6.16) (11.01) (24.15) (12.04) 10.86 35.03 33.80 42.57 43.63 (14.31) (15.09) Weeks Year per (12.94) (13.53) 0.630 0.253 Self-Employed (0.435) Age (0.483) 39.98 39.32 (8.47) Female (11.25) 0.949 0.847 (0.360) 340 Sample Size Census. 2000 in Parentheses) Deviations (Standard 309 (0.220) 257 of Californians micro-data from the 2000 is from the 5-percent Notes: The sample (PUMS) sample public-use in workers" code = 452) who worked Census and includes "miscellaneous appearance (occupation personal to include care services" restricted code = 899). The sample was further "nail salons and other personal (industry or positive in 1999. income who either had some labor income self-employment only people ??mese Nguyen curists share the last name manicurists) mani and 45% of the Vietnamese share one of the three most com mon last names (Nguyen, Tran, and Le).10 the shares of mani The similarity between in the 2000 curists who are Vietnamese Census, 57%, and in the 2000 licensing in our data, 53%, also gives us confidence identification. The California licensing data do not tell us whether were manicurists individual However, immigrants. Vietnamese whether dominantly Vietnamese we manicurists immigrants manicurists can investigate were and whether were 1 presents Table Census.11 sample means for characteristics of Vietnamese and non manicurists from the 2000 Cen Vietnamese sus. Nearly all of the Vietnamese manicur ists were with of them 99% immigrants, been born outside of the United having States. Although 32% of the non-Vietnam ese manicurists to the United earlier, ese and than pre non predomi two were on average. non-Vietnamese immigrants categorizations they immigrants, States We more than to Vietnam refer manicurists and natives, are came 3 years although rather the similar. The of California sample from the 2000 Census reveals manicurists that the typi natives the 597 California nantly using found in the 5-percent manicurists public use micro-data sample (PUMS) of the 2000 names for Vietnamese 10As a test, our algorithm names identified 91 % of the 44 Vietnamese correctly in Elliott and misidentified (1999) only 1.5% of the names in Chang 69 Chinese (1991). includes "miscellaneous nThe sample personal workers" code = 452) who appearance (occupation care ser in "nail salons and other worked personal vices" code = 899). The code for (industry industry nail salons does not appear prior to the 2000 Census, over in this industry the dramatic reflecting growth the 1990s. INDUSTRIAL AND LABOR RELATIONS REVIEW 310 Table 2. for Statistics Summary the California Data. Licensing Standard Mean Variable Total Manicurists Residents per 1,000 Manicurists Non-Vietnamese Manicurists per Rate Unemployment Income ($1,000) per Capita MSA Manicurist per Original Original Vietnamese MSA over the 16-year and non-Viet similar wages (between $10 and $11 per hour) and worked a similar number of hours per week and weeks However, per year. only 25% of were manicurists Vietnamese ists were at booths only of 5% were the men major com manicurists in and met each statistical area (MSA) in the years ropolitan the number from 1987 to 2002 by counting who had active licenses for at of manicurists least would of six months be the year. issued a license as counted 30.40 16.94 3.56 9.23 31.94 1.31 0.44 0.24 2.42 44.80 0.18 106.96 0.00 7.53 an active Thus, some inMarch 1990 manicurist manicurists dents. Hence, our annual observations sample (N = 1.95 The means 544). and standard nia MSAs, resulting in a total sample size of rate The unemployment 544 observations. for and income per capita were collected in each year and aggregated each county to get MSA-level weights using population We aggregated the data by MSA rather than county because MSAs better capture Since the Cali labor markets. the relevant fornia licensing rather data give us home 1,000 per consists of work namese resi on each of 34 Califor we addresses, we because ese 16 were manicurists were concerned concerned across of their desire enclaves. likely lines county to live in Vietnam the Comparing Viet that be more might to commute natives places of resi dence and work for the California manicur that ists from the 2000 Census, we found were more manicurists Vietnamese likely to commute from Orange than natives to thus cross Los County, County Angeles an a not MSA line. line but county ing However, for 1990, but not someone who was issued a license in September. Similarly, manicur late in the year ists whose licenses expired but not those whose be counted, would licenses expired early in the year. We then in each year divided by the MSA population to generate and the number of Vietnamese non-Vietnamese 1.79 1987-2002 period than data, we licensing manicurists one who was 2.13 particular, and of Vietnamese number non-Vietnamese 0.00 3.05 than manicurists. the California Using vast women; non-Vietnamese calculated 0.48 6.76 suffer from measure that our results would In ment bias if we aggregated by county. manicur The salons. beauty 15% of Vietnamese prised of non rented manicurists of manicurists ity discount stand-alone, and a larger proportion Vietnamese ing at employees salons 0.61 measures.12 self-employed, to 63% of non-Vietnamese mani compared the fact that a curists. This likely reflects manicur of Vietnamese larger proportion nail 2.55 3.42 MSAs earned manicurist 2.71 0.24 population. manicurist Vietnamese cal namese 0.24 0.36 50.50 (100,000s) Population in 1980 per 1,000 Residents on data for 34 California are weighted by MSA Based deviations 0.40 1.05 Residents 1,000 Maximum Minimum 1.66 1,000 Residents 1,000 Residents per Vietnamese Deviation we found that very across MSA ists commuted ample, from Orange County dino County. few manicur lines, for ex to San Bernar and income of the MSAs' 12Estimates population per capita were calculated using county data from the Bureau of Economic Analysis (www.bea.gov/bea/re rates are from the and unemployment gional/reis/), Rand California database, www.rand.org. VIETNAMESE MANICURISTS Table 3. Explaining the Number 311 of Non-Vietnamese Manicurists. WLS TV IndependentVariable Manicurists Vietnamese per 1,000 Residents Income Original MSA Manicurists -0.506*** -0.493*** -0.401*** -0.376*** (14.52) (7.03) (9.52) 0.022** 0.020*** 0.022** 0.022*** (2.33) (3.59) (2.42) (3.98) 0.041*** 0.009** (5.38) (2.12) ? MSA 0.006 0.039*** (5.49) (1.64) ? 0.634*** 1,000 Residents Original (5) (10.56) ? per (4) -0.386*** ? per Capita (3) (11.63) ? Rate Unemployment (2) (1) 0.632*** (15.54) Population ? (100,000s) ? (15.98) ? -0.001** -0.001*** (2.22) (4.08) No MSA Fixed Effects No Yes No Yes Year Fixed Effects Yes Yes Yes Yes Observations 544 0.36 544 544 544 544 0.90 0.81 0.90 0.81 R-Squared Notes: regressions Absolute t-statistics calculated using are weighted by MSA population. *Statistically significant at the .10 level; standard heteroskedasticity-robust **at the means Table the weighted 2 presents and standard deviations of the MSA vari The number ables used in our regressions. across MSAs of manicurists varied widely and over time, ranging from 0.24 to 2.7 per the fraction thousand residents. Similarly, an MSA who were of manicurists within Vietnamese varied widely, especially by the In 1987, the share of end of the period. held by Vietnamese manicurists licenses was largest in the Santa Clara MSA (29%), followed (16%) by Los Angeles/Orange the other and Sacramento (12%). However, 31 MSAs had less than the state average of less than 2%. By 10%, with most having manicurists 2002, the share of Vietnamese had grown to 60% statewide, with the larg est shares still being found in Santa Clara Los and (72%). (85%) Angeles/Orange While the Vietnamese held substantial ma in several cities, jorities of all the licenses still less than 10% of the they represented in half of the MSAs. There was manicurists in the size of Vietnamese similar variation enclaves across MSAs. The number of Viet namese in 1980 residents per thousand our in construction of instru the (used .05 level; ***at the errors .01 level are Yes in parentheses. (two-tailed All tests). varied from 0 to 7.5. Though these ments) levels are small in terms of the overall popu to important differ lation, they translate ences and in the enclave concentration Results Regression Table our 3 presents that explain gressions of Vietnamese strength. for results the number re the of non Vietnamese manicurists per 1,000 residents in California MSAs. Columns (l)-(3) the results using weighted least present are where the squares (WLS), weights equal to the population of each MSA. The esti mates of the rate displacement are all statis to and range from -0.39 tically significant an of addi that the -0.51, entry implying tional 10 Vietnamese manicurists would 4 to 5 non-Vietnamese mani have displaced curists. Column (1) shows the results from the regressing of number non-Vietnamese manicurists per 1,000 residents on the num ber of Vietnamese manicurists (and year fixed effects) without any other explana tory variables. sented The in columns other (2) and regressions, pre (3), also control INDUSTRIAL AND LABOR RELATIONS REVIEW 312 rate and per capita for the unemployment income, but differ in how they control for the invariant characteristics of metropoli tan areas. in column The regression (2) fixed effects, while includes metropolitan the regression in column the (3) includes initial number of manicurists per thousand residents and the initial metropolitan popu lation. The signs of the other estimated coeffi one must cients seem plausible, although remember that these are reduced form on unem The the equations. positive sign rate ployment be may due to non-Vietnam ese manicurists being more likely to enter in it when outside the field or remain op are less plentiful. The sign on portunities income per capita may reflect the positive effect of an increase in the demand for in high-income manicures cities on the of number non-Vietnamese manicurists. taste for or native potential ments in manicures cities initially prevalent. estimates of the displacement if there were biased, however, shocks to either labor demand labor problem, to measure supply. we To use variations address a set of this instru in inter-metro to differ politan supply shocks attributable ences en in the size of their Vietnamese claves in namese In 1980. the increase particular, we in the rate of growth manicurists associated with measure of Viet enclave size as well as the differential in increase rate of Vietnamese the level and growth manicurists after the introduction of the in 1996. The licensing exam in Vietnamese three shocks are measured using an manicurists grew of in met faster areas with larger enclaves in 1980. ropolitan on the interaction The coefficient between exam in Vietnamese the licensing offering and the enclave trend is statistically signifi cant in the specification with metropolitan fixed that metropolitan effects, implying areas with enclaves larger also experienced in the growth rate of Viet larger increases namese manicurists after the licensing exam was offered in Vietnamese.13 The second of the dis stage estimates are effect in columns placement presented of (4) and (5) of Table 3. Both IV estimates the displacement effect are statistically sig with nificant, These a rate displacement coefficients Vietnamese imply of-0.4. that for every five manicurists two roughly the entering non-Vietnamese for the number mar manicur ists were displaced. The estimate of the displacement decreases from 0.5 to 0.4 when we ment mani where Vietnamese ket, on the initial And the positive coefficient number of manicurists thousand resi per in 1987 may capture an unobserved dents curists were The WLS effect will be unobserved fications with and without metropolitan fixed effects, that the number implying of Vietnamese effect instru mani curists using inter-metropolitan supply in the size shocks associated with variation of Vietnamese enclaves and the introduc tion of the Vietnamese language version of the licensing uncorrected exam. estimates This may our that implies suffer more from the fact that some Vietnamese ignoring not displacing, immigrants were replacing, native manicurists (unobserved supply than from ignoring the fact that shocks) immigrants and natives were drawn to ex markets demand (unobserved panding In the with contrast, literature, shocks). the exception of Friedberg (2001), gives to the potential of greater weight problem unobserved demand shocks. en two clave trend T) and (VEnclavem80 terms that interact whether the licensing exam was offered in Vietnamese with the enclave size and (VExam^ VEnclave^^ with enclave the trend (VExami VEnclave^T). The results for the first-stage regression are presented in Table 4. The estimated on the enclave coefficients trend are posi tive and statistically in the speci significant in the number 13The observed increase of Viet namese manicurists associated with the introduction exam of the Vietnamese that poli suggests language exams cies of offering affect English-only licensing as a barrier to their entry. by acting By immigrants state of Vietnamese the number manicurists 2002, wide had increased 24% over the pre-1996 by roughly trend. effects; politan The only areas statewide is captured increase by the year across metro increase the differential to instrument. is used 313 VIETNAMESE MANICURISTS Table 4. First the Number Predicting Regressions: Stage IndependentVariable Enclave Trend Manicurists. of Vietnamese (2) (3) (1) Size (Enclave in 1980 * (4) 0.018*** 0.016*** t) (17.30) (20.79) Exam Vietnamese * Enclave (l=Yes) Size in 1980 -0.002 0.007 (0.18) (0.64) Exam Vietnamese * Enclave (l=Yes) 0.004 0.009*** Trend (1.17) (2.96) Rate Unemployment (2.72) (1.93) (4.18) -0.045*** 0.027** -0.013*** (2.56) (5.80) (0.12) Income per Capita 0.024** ($1,000) (2.23) MSA Original Manicurist MSA Original Population 1,000 per ?0.011 ? ? ? (100,000s) ? ? MSA Fixed Effects Year Fixed Effects Yes Yes Observations 544 0.90 R-Squared Joint of Instruments Significance (8.97) ? Residents (F-test) unbiased produce comparisons 14Cross-city if cities effects of wage and displacement estimates are a valid for control with few immigrants group if of immigrants. cities with However, large numbers native workers migrate from cities with large numbers the dif of immigrants to those with few immigrants, in wages these cities will decrease, between ference to an underestimate and of the wage effect, leading will the difference will of native workers in the number to an overestimate of the displace and Katz 1992; Freeman, Borjas, increase, leading ment effect (see Borjas 1994). Yes 544 .01 level 0.79 0.97 of entry Vietnamese errors 439.98 are in parentheses. or slower of numbers smaller having manicurists. All tests). (two-tailed to areas experiencing of them moved rates No ? standard the 0.002*** (11.29) YesNo YesYes 544 544 429.29 t-statistics calculated Absolute using heteroskedasticity-robust are weighted by MSA population. regressions * at the .10 level; **at the .05 level; ***at Statistically significant 0.093*** (7.64) (0.36) ? 0.005*** (10.57) 0.99 ? Notes: effect Our estimate of the displacement if non-Vietnamese still be biased would to the entry of Viet manicurists reacted to other namese manicurists by moving areas in California.14 Using metropolitan from manicurists the sample of California the 2000 Census, we find that only 6.2% of moved manicurists the 257 non-Vietnamese areas in California between metropolitan five years and less than half the preceding -0.010*** -0.016* -0.014*** -0.001 (%) is un it Thus, likely that our estimate of the displacement effect is biased for this reason. Characterizing Entrants Deterring the Displacement: or Hastening Exits? of native workers by immi Displacement in two ways: lower grants can be manifested our li outflows. inflows or higher Using censing namese data, entry we examine into the Viet whether was manicuring deter the from choosing ring non-Vietnamese or hastening the exit of current occupation manicurists. these two effects Separating us some may give insight into the costs of entrants who since displacement, potential choose other occupations may incur lower costs vested ence. than current workers who have in in training and accumulated experi It may also shed light on why the 314 INDUSTRIAL AND LABOR RELATIONS REVIEW Table 5. the Explaining and Inflows Exit Rates of Non-Vietnamese Manicurists. Exit Rate for Manicurists Inflows of Non-Vietnamese Manicurists Descriptive DescriptionStatistics Mean of Dependent TV TVWLS WLS ? Variable 0.073 Non-Vietnamese 0.082 (0.055) Manicurists in Vietnamese Change per 1,000 Residents in the Unemployment Change Rate 0.076 -0.462*** -0.630*** 0.090*** 0.112*** (0.050) (10.66) (10.28) (4.85) (4.98) 0.055 (1.118) in Income Change (0.651) 0.003 (1.12) Fixed Effects ? No No No No Year Fixed Effects ? Yes (0.47) 510510 510 ? 0.69 0,68 0.52 standard t-statistics calculated Absolute using heteroskedasticity-robust are weighted are weighted The means by MSA by MSA population. are in parentheses. at the .10 level; **at the .05 level; ***at the .01 level significant *Statistically ing native areas has of measuring from labor practice outflows migration us across metropolitan mixed produced in native markets of evidence of immigration (see Filer 1991; Frey 1996; Card 2001 ;Card and DiNardo 2000).15 Table 5 presents results from regressions in the of inflows and exit rates on changes of fects. Inflows manicurists Vietnamese 1,000 residents, and per capita changes income, are measured of non-Vietnamese manicurists the are in parentheses. All and the standard tests). (two-tailed current exited.16 non-Vietnamese As before, we manicurists correct for who potential sources of bias using the size of the Viet namese in 1980 and the introduc enclave exam as tion of the Vietnamese language The WLS and IV estimates instruments.17 ef number per 1,000 15WhileFiler (1991) and Frey (1996) found that to related of natives is negatively the net migration Card the influx of immigrants, (2001) and Card and a small positive Filer effect. found DiNardo (2000) are more that natives also found likely to leave and that have experienced less likely to enter cities large In con in their increases immigrant populations. are that natives evidence trast, Card (2001 ) presented to cities more that have experienced likely to move skilled in the number of similarly increases large immigrants. errors population per in unemployment and year fixed as 0.52 in who entered the occupation residents each year and exit rates as the proportion of the effects number (0.72) Yes Yes Yes 510 Notes: and -0.001 (0.63) regressions deviations common (0.63) (0.53) -0.001 510 R-Squared flows -0.001 -0.001 -0.002 (1.09) MSA Observations 0.002 (0.90) -0.004 0.149 per Capita (0.018) as those whose are defined 16Inflows or entrants or exits is first issued in a given year; outflows license are those whose The latter may be license expires. with error since some may leave in the year measured to the expiration license. We of their two-year prior use of non than the number the exit rate rather who exit per 1,000 because manicurists Vietnamese with decreases decrease outflow levels will necessarily in the number manicur non-Vietnamese of current in their exit rate. ists even when there is no change between the relationship 17Since we are estimating in Vietnamese and non-Viet manicurists changes we use a namese inflows and exits from manicuring, of our empiri consistent with a first difference model instru for the levels. The corresponding cal model in 1980 are the size of the Vietnamese ments enclave of the availability with an indicator and its interaction of the Vietnamese language test. VIETNAMESE MANICURISTS show substantial displacement of inflows. Roughly, for every in the case two Vietnam ese market, manicurists the entering one 315 ists in the state to some Their of displacement at a rate but ists, in 1987. far native entry led manicur below one-to-one, not to enter. As non-Vietnamese decided for the exit rate, the estimated is coefficient the effect is small. These positive, although estimates in imply that the large average that Vietnamese manicurists implying new nails found many to polish. More we find for that every five specifically, Vietnamese manicurists the entering crease market, of one about manicurist Vietnamese 1987 and 2002 per 1,000 residents between caused 9% to 11% of non-Vietnamese mani curists to exit the occupation, less than 1% per the Overall, year.18 regression results that the entrance of the Vietnam suggest ese was largely non potential deterring entrants rather than hastening Vietnamese the exit of current non-Vietnamese mani curists. for non-Vietnamese manicurists. The Vietnamese also appear to have been much more committed to the occupation, having a lower rate of exit non-Vietnamese after had after six years two. than the Summary on the 18A regression of outflows in the change number of Vietnamese cor shows a negative actually non the fact that fewer relation, likely reflecting were Vietnamese manicurists left to exit. The coeffi cients for inflows are somewhat to sensitive changes in specification, but the size of the economic effect is and is much larger than what is seen in manicurists the entire versus manicurists for in demand. While was expansion it is possible due in that to movement curve, the entrance along a fixed demand of Vietnamese to have manicurists appears been associated with new forms of service in the form of walk-in salons that delivery demand may have increased by reducing time costs. While Vietnamese and na immigrants tives do not compete for a fixed number of manicuring jobs, our estimates imply that were dis native manicurists 14,000 roughly 1987 and 2002, placed in California between that "native workers' suggesting apprehen sions are not completely misguided" (Borjas At the same time, we find that 1999:63). most of the displacement stemmed from a reduction Between 1987 and 2002, the number of in California Vietnamese manicurists in creased by 35,700, a number slightly larger than the total number of licensed manicur always large, exit rates. demand creases ese and Conclusions non-Vietnamese in the number of increase the entry of Viet manicuringjobs following namese should dispel the no immigrants tion that immigrants and natives compete for a fixed number of jobs. We cannot determine the extent to which the increase in the number of jobs was due to a very elastic how quickly mani Finally, we examine curists left the occupation for different cohorts the per entering by calculating who became licensed centage of manicurists in a given year and left the market within two years and within six years. The pattern of spells was relatively stable for the years of our and sample for both non-Vietnamese if anything, Vietnamese there manicurists; was a slight reduction in the speed at which the non-Vietnamese exited. This finding is consistent with the small estimated effect on the exit of the entry of the Vietnamese rate two were displaced. The dramatic in choosing the number to enter the of non-Vietnam rather occupation than a quickened exit of those already work Our empirical results ing as manicurists. to the the com gap between help bridge mon public that immigrants take perception jobs from natives and economists' findings or no overall effects on of modest employ ment levels. For a narrowly defined job we find evidence of appreciable market, displacement, broader markets whereas do many studies of not. Our results would be consistent with small overall if displaced effects employment manicurists in similar (and natives working low-skilled occupations) find other quickly The costs of displacement jobs. may be can easily small if displaced manicurists INDUSTRIAL AND LABOR RELATIONS REVIEW 316 move to other jobs at similar wages or if, as we saw here, much of the displacement not to enter involves choosing people the rather occupation than non-Vietnam ese manicurists being is no there However, that the displacement as they may be viewed displaced workers, to leave. induced reason to believe costs are zero, and substantial by the if it takes especially Identifying to find new jobs time in the labor market. of friction because the By same token, the costs may not be trivial to those benefits there are substantial displaced, while from the The ists. entry of Vietnamese manicur entry of Vietnamese manicur with innovations ists has been associated in the market, and expansions making service once-exclusive Appendix Vietnamese a commonplace. Manicurists the process of identifying Vietnamese We began common names Vietnamese manicurists by obtaining two sources: Asian Name from the Cal Poly Pomona Pronunciation Guide (http://www.csupomona.edu/ to the list of it was added last names; otherwise, was also a small shared Vietnamese last names. There of last names that fell slightly below the 50% group threshold, yet we thought were likely to be Vietnamese and Adopt Vietnam, ~pronunciation/vietnamese.html) an internet for people Vietnamese adopting guide children (http://www.adoptvietnam.org). common A small number of these Vietnamese names are also common names for other Asian groups. is a prevalent first name for Viet For example, Lam namese women but is also a common Cantonese last our list of common name. This led us to compare names with lists of common Vietnamese Cantonese, Fili Cambodian, Thai, Japanese, Mandarin, Korean, and Indonesian lists that were obtained names, pino, Asian Name Pronunciation from the Cal Poly Pomona names did of the common Vietnamese Guide. Most us to classify on these other not appear lists, leading on last names based names. The Vietnamese names. When them as exclusively Vietnamese they did on one of the other them as lists, we classified appear names. We also classified Vietnam shared Vietnamese ese names as being shared when with they overlapped such as Bach or Lang. names, European our list of Vietnamese last names, To supplement names we searched common Vietnamese for other manicurists. For ex the names of California using of the 63 manicur that 38 (60.3%) ample, we found had first or middle ists with the last name of Tieu names that were on our list of exclusively Vietnamese Most of the rest had either first or middle first names. names or American that are shared Vietnamese the Vietnamese that are popular (for among us that Tieu is a This convinced example, Jenny). common it is not listed last name. Since Vietnamese names names a common as being we added it to our names. name for any other Asian group, last list of exclusively Vietnamese we added a last name to our list of formally, more last names whenever than Vietnamese with that last name manicurists 50% of the California on our list of names that were had first or middle If the last name first names. exclusively Vietnamese name was not listed as a common other Asian among to the list of exclusively Vietnam it was added groups, More common ese their other first names under and middle each of our shared Viet three categories?exclusively Vietnamese, listed at the end and likely Vietnamese?are namese, of the appendix. as A computer manicurists assigned algorithm were true: if any of the following being Vietnamese was Their last name Their last name one or more and were Two exclusively Vietnamese. or shared likely Vietnamese names of their first or middle names. Vietnamese or more exclusively exclusively was of their first Vietnamese. and middle names were names was exclusively One of their first or middle or more and one of their first or Vietnamese names were middle shared names. was a series of meet The final step in the process cases that "fell individual ings in which we discussed as Vietnamese by our assigned just short" of being one for example, exclusively only having, algorithm, name. Most first or middle of these Vietnamese were manicurists Vietnamese, frequently obviously names Vietnamese that were mis additional having or appearing in the concatenated spelled, together, to avoid pitfalls fields. wrong Finally, we were careful such as De manicurists such as identifying with names as being La Torre, Van Dyke, Le Ann, and Mac Kenzie com because Vietnamese parts of their names were names mon Vietnamese (De, La, Van, Le and Mac). Last Names: Exclusively Anh Vietnamese: Bang Banh Be Bo Bui Cai Cam Cao Chau Chim Co Cong Cu Cue Cung Dai Dam Dang Chuong Dieu Dao Daole Diem Dien Danh Dau Dich Diep Dinh Doan Don Dong Du Dung Giang Giap Ha Hang Chu VIETNAMESE MANICURISTS Hinh Hoa Hoac Hoang Hua Hung Huong Huyen Huynh Khau Khieu Khoan Khong Khuat Khuc Khuong Khuu Kieu Ky La Lac Lan Lao Le Lien Lieu Loc Loi Luc Luong Luu Luyen Ly Mac Mach Mai Minh My Nga Ngac Ngan Nghe Nghi Nghiem Ngo Ngoc Ngu Nham Nhan Nhieu Ninh Nong Nguy Nguyen Nguyet Phi Pho Phong On Pham Phan Phu Phuc Phung Hao Phuong Thach Sa Son Quach Quang Thai Than Thanh Thang First Names: Exclusively Bao Be Bian Bich Binh Cam Canh Chau Chinh Dae Kien Danh Dao Dat De Diem Cong Cue Cuong Dien Diep Diu Due Due Dung Giang Hai Hang Hanh Hao Hien Hoc Hue Hung Hieu Hoa Hoang Hiep Huu Ket-Nien Huong Huy Huyen Huynh Hyunh Ta Tai Tat Suong Thi Thiem Thien Tuyet Uong Uy Van Vi Vien Viet Vinh Vu Vuong Vuu Vy Xuan Yen Tuong Khanh Kieu Loc Ly Mai Lan Lanh Le Liem Lien Lieu Linh Loan Minh My Nga Ngan Ngoc Ngon Ngu Nu Oanh Nhan Nhat Nhu Nhung Nguyen Nguyet Pham Phu Phuc Phung Phuoc Qui Phuong Quang Sinh Son Suong Tham Thang Thanh Quoc Quy Quyen Thao Thi Thien Thinh Tho Thorn Thu Thuan Tien Vo Vong Toai Toan Tram Trang Tri Trieu Trinh Trong Tu Tuan Uoc Uyen Trung Tung Tuyen Tuyet Vien Viet Vinh Vu Vuong Xuan Yen Shared: An Au Bach Bi Chung Do Duong Han Ho Hong Khan Kiev Kim Lai Lam Lang Lau Long Lu Ma Quan Sam Tan Tang Ung Vang Likely: Ba Bao Ong Che Thao Chiem Hy Kha Kiem Kien Lo Man Vietnamese: Anh Thieu Thu Thuan Thong Thuy Tien Tiet Thuong Tra Trac Tram Tran Trang Tieu To Ton Tong Tonnu Tri Trieu Trinh Trung Truong Tsan Tsang Tu Tuan Voong 317 True Van Shared: Ai An Chi Chien Dong Duong Ha Han Ho Hong Khan Kim Lam Long Nam Quan Sang Si Tarn Tan Thuy Mong Thoi REFERENCES Card. 1991. 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