| Summary: | The writers carried out a pooled cross-section and time-series analysis of the unemployment rates across ten major industries in the U.S. during the 1983-1994 period to evaluate the impact of the North American Free Trade Agreement (NAFTA) and immigration. They argue that their findings reveal that the output produced by the industry, unemployment benefit coverage, and interest rates are significant determinants of industry unemployment rates, whereas union pressure does not influence industry unemployment. In addition, they assert that both Canadian and Mexican immigrants seem to be complements to the U.S. labor force, with Canadian immigrants being highly complementary. In conclusion, they contend that the Chow test offers no evidence that the structure of unemployment determination in these industries has been altered by NAFTA.
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