Does immigration crowd natives into or out of higher education?

This paper investigates the impact of immigration on the college enrollment of U.S. natives. Many studies have focused on the effect of increased demand for schooling by immigrants on the enrollment of natives. However, changes in immigrant labor supply may also affect native enrollment by changing local market prices. Using U.S. Census data from 1970 to 2000, I find that state-level increases in the number of immigrant college students do not significantly lower the enrollment rates of U.S. natives. On the contrary, state-level increases in the ratio of unskilled immigrant workers to skilled immigrant workers significantly raise native enrollment rates. These findings suggest that the demand for college is sensitive to wage rates and that college slots are flexibly supplied over a decadal time horizon.