This paper presents a theoretical and empirical study of how immigration influences the joint
determination of the wage structure and internal migration behavior for native-born workersin local
labor markets. Using data from the 1960-2000 decennial censuses, the study showsthat immigration
is associated with lower in-migration rates, higher out-migration rates, and a decline in the growth
rate of the native workforce. The native migration response attenuates the measured impact of
immigration on wages in a local labor market by 40 to 60 percent, depending on whether the labor
market is defined at the state or metropolitan area level.