Download or read book The Effect of Low Skilled Immigration on Us Prices written by Patricia Cortes and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: While an extensive literature examines the impact of low-skilled immigration on US native wages, there has been almost no research on the parallel question of how immigration affects the price of goods and services. A standard small open economy model suggests that low-skilled immigration should reduce the relative price of non-traded goods by decreasing the wages of low-skilled workers. Treating US cities as small open economies and using confidential price data on goods and services to estimate reduced-form price effects, I find that, at current immigration levels, a 10 percent increase in the share of low-skilled immigrants in the labor force decreases the price of immigrant-intensive services, such as housekeeping and gardening, by 1.3 percent and of other non-traded goods by 0.2 percent. Structural estimates suggest that lower wages are a likely channel through which these effects take place. However, wage effects are significantly larger for low-skilled immigrants than for low-skilled natives because the two are imperfect substitutes. Overall, the results imply that the low-skilled immigration wave of the 1990s increased the purchasing power of high-skilled natives living in the 25 largest cities by 0.65 percent but decreased the purchasing power of native high school dropouts by 2.66 percent.
Download or read book The Economic and Fiscal Consequences of Immigration written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2017-07-13 with total page 643 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community.
Download or read book The Economics of Immigration written by Cynthia Bansak and published by Routledge. This book was released on 2015-04-24 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economics of Immigration provides students with the tools needed to examine the economic impact of immigration and immigration policies over the past century. Students will develop an understanding of why and how people migrate across borders and will learn how to analyze the economic causes and effects of immigration. The main objectives of the book are for students to understand the decision to migrate; to understand the impact of immigration on markets and government budgets; and to understand the consequences of immigration policies in a global context. From the first chapter, students will develop an appreciation of the importance of immigration as a separate academic field within labor economics and international economics. Topics covered include the effect of immigration on labor markets, housing markets, international trade, tax revenues, human capital accumulation, and government fiscal balances. The book also considers the impact of immigration on what firms choose to produce, and even on the ethnic diversity of restaurants and on financial markets, as well as the theory and evidence on immigrants’ economic assimilation. The textbook includes a comparative study of immigration policies in a number of immigrant-receiving and sending countries, beginning with the history of immigration policy in the United States. Finally, the book explores immigration topics that directly affect developing countries, such as remittances, brain drain, human trafficking, and rural-urban internal migration. Readers will also be fully equipped with the tools needed to understand and contribute to policy debates on this controversial topic. This is the first textbook to comprehensively cover the economics of immigration, and it is suitable both for economics students and for students studying migration in other disciplines, such as sociology and politics.
Download or read book The Heckscher Ohlin Model in Theory and Practice written by Edward E. Leamer and published by International Finance Section Department of Econ Ton Univers. This book was released on 1995 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study discusses the Hecksher-Ohlin factor-proportions theory of comparative advantage, which states that international commerce compensates for the uneven geographic distribution of productive resources, that traded commodities are really bundles of factors (land, labor, and capital), and that the exchange of commodities internationally is therefore indirect arbitrage, transferring the services of otherwise immobile factors of production from locations where these factors are abundant to locations where they are scarce. Under some circumstances, this indirect arbitrage can completely eliminate price differences. Despite new models in trade theory and evidence from trade theorists suggesting that the H-O model is faulty, the theory is still extraordinarily useful: pedagogically, in correcting the assumptions of the partial-equilibrium with regard to labor supply and wage rates; politically, in showing that although tariffs and quotas have redistributive effects, they reduce efficiency; and empirically, in explaining important aspects of the patterns of international trade. The H-O model is essential for any study of the impact of globalization on the American workforce.
Download or read book The Once and Future Worker written by Oren Cass and published by Encounter Books. This book was released on 2018-11-13 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: “[Cass’s] core principle—a culture of respect for work of all kinds—can help close the gap dividing the two Americas....” – William A. Galston, The Brookings Institution The American worker is in crisis. Wages have stagnated for more than a generation. Reliance on welfare programs has surged. Life expectancy is falling as substance abuse and obesity rates climb. These woes are not the inevitable result of irresistible global and technological forces. They are the direct consequence of a decades-long economic consensus that prioritized increasing consumption—regardless of the costs to American workers, their families, and their communities. Donald Trump’s rise to the presidency focused attention on the depth of the nation’s challenges, yet while everyone agrees something must change, the Left’s insistence on still more government spending and the Right’s faith in still more economic growth are recipes for repeating the mistakes of the past. In this groundbreaking re-evaluation of American society, economics, and public policy, Oren Cass challenges our basic assumptions about what prosperity means and where it comes from to reveal how we lost our way. The good news is that we can still turn things around—if the nation’s proverbial elites are willing to put the American worker’s interests first. Which is more important, pristine air quality, or well-paying jobs that support families? Unfettered access to the cheapest labor in the world, or renewed investment in the employment of Americans? Smoothing the path through college for the best students, or ensuring that every student acquires the skills to succeed in the modern economy? Cutting taxes, expanding the safety net, or adding money to low-wage paychecks? The renewal of work in America demands new answers to these questions. If we reinforce their vital role, workers supporting strong families and communities can provide the foundation for a thriving, self-sufficient society that offers opportunity to all.
Download or read book Impact of Low Skilled Immigration on the Youth Labor Market written by Christopher L. Smith and published by DIANE Publishing. This book was released on 2011 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a print on demand edition of a hard to find publication. The employment-to-population rate of high-school aged youth has fallen by about 20 percentage points since the late 1980s. Growth in the number of less-educated immigrants reduced youth employment rates. Previous research had identified a modest negative relationship between immigration levels and adult labor market outcomes. Two factors are at work: there is greater overlap between the jobs that youth and less-educated adult immigrants do, and youth labor supply is more responsive to immigration-induced changes in their wage. Reduced employ. rates are not associated with higher earnings 10 years later in life. There is a possibility that an immigration-induced reduction in youth employment hinders youths' human capital accumulation.
Download or read book How Low skilled Immigration is Changing US Prices and Labor Markets written by Patricia Cortes (Ph. D.) and published by . This book was released on 2006 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: (cont.) Using data from the Occupation Information Network and the Census, I find that: (1) within a city, occupations that require fewer language skills have a higher ratio of low-skilled immigrants to natives, and (2) after an immigration shock, there is a disproportional reduction in the wages of natives that work in manual occupations.
Download or read book The New Americans written by Panel on the Demographic and Economic Impacts of Immigration and published by National Academies Press. This book was released on 1997-10-28 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book sheds light on one of the most controversial issues of the decade. It identifies the economic gains and losses from immigration--for the nation, states, and local areas--and provides a foundation for public discussion and policymaking. Three key questions are explored: What is the influence of immigration on the overall economy, especially national and regional labor markets? What are the overall effects of immigration on federal, state, and local government budgets? What effects will immigration have on the future size and makeup of the nation's population over the next 50 years? The New Americans examines what immigrants gain by coming to the United States and what they contribute to the country, the skills of immigrants and those of native-born Americans, the experiences of immigrant women and other groups, and much more. It offers examples of how to measure the impact of immigration on government revenues and expenditures--estimating one year's fiscal impact in California, New Jersey, and the United States and projecting the long-run fiscal effects on government revenues and expenditures. Also included is background information on immigration policies and practices and data on where immigrants come from, what they do in America, and how they will change the nation's social fabric in the decades to come.
Download or read book Effects of Low skilled Immigration on U S Natives written by Adriana D. Kugler and published by . This book was released on 2008 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the 1980s the composition of immigrants to the U.S. shifted towards less-skilled workers. Around this time, real wages and employment of younger and less-educated U.S. workers fell. Some blame recent immigration shifts for the misfortunes of unskilled workers in the U.S. OLS estimates using Census data show instead that native wages are positively related to the recent influx of Latin Americans. However, these estimates are biased if demand shocks are positively related to immigration. An IV strategy, which deals with the endogeneity of immigration by exploiting a large influx of Central American immigrants towards U.S. Southern ports of entry after Hurricane Mitch, also generates positive wage effects but only for more educated native men. Yet, ignoring the flows of native and earlier immigrants in response to this exogeneous immigration is likely to generate upward biases in these estimates too. Native wage effects disappear and less-skilled employment of previous Latin American immigrants falls when controlling for out-migration. This highlights the importance of controlling for out-migration not only of natives but also of previous immigrants in regional studies of immigration.
Download or read book Coming Out of the Shadows written by Sherrie A. Kossoudji and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1986, Congress passed the Immigration Reform and Control Act (IRCA) to reduce the incentives for unauthorized migration by eliminating U.S. employment opportunities for unauthorized workers. The General Legalization Program within IRCA granted amnesty to approximately 1.7 million long-term unauthorized workers to bring them "out of the shadows" and improve their labor market opportunities. An analysis of wages using panel data for a sample of legalized men provides evidence that wage determinants are structurally different after amnesty for them, but not for the comparison group measured during the same time periods. This suggests that changes are due to legalization rather than differences in macroeconomic conditions. These changes result from altered returns to human capital and continuing penalties for those who work in traditional migrant jobs. The penalty for being unauthorized begins with low entry wages and is compounded by slow wage growth during the unauthorized era. Legalized men experienced rapid wage growth after legalization. Benchmark estimates of the penalty to being unauthorized range from 14 percent to 24 percent. The wage benefit of legalization under IRCA was approximately 6 percent by 1992.
Download or read book The Roles of Immigrants and Foreign Students in US Science Innovation and Entrepreneurship written by Ina Ganguli and published by University of Chicago Press. This book was released on 2020-02-19 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: The number of immigrants in the US science, technology, engineering, and mathematics (STEM) workforce and among recipients of advanced STEM degrees at US universities has increased in recent decades. In light of the current public debate about immigration, there is a need for evidence on the economic impacts of immigrants on the STEM workforce and on innovation. Using new data and state-of-the-art empirical methods, this volume examines various aspects of the relationships between immigration, innovation, and entrepreneurship, including the effects of changes in the number of immigrants and their skill composition on the rate of innovation; the relationship between high-skilled immigration and entrepreneurship; and the differences between immigrant and native entrepreneurs. It presents new evidence on the postgraduation migration patterns of STEM doctoral recipients, in particular the likelihood these graduates will return to their home country. This volume also examines the role of the US higher education system and of US visa policy in attracting foreign students for graduate study and retaining them after graduation.
Download or read book Immigration and the Work Force written by George J. Borjas and published by University of Chicago Press. This book was released on 2007-12-01 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1970s, the striking increase in immigration to the United States has been accompanied by a marked change in the composition of the immigrant community, with a much higher percentage of foreign-born workers coming from Latin America and Asia and a dramatically lower percentage from Europe. This timely study is unique in presenting new data sets on the labor force, wage rates, and demographic conditions of both the U.S. and source-area economies through the 1980s. The contributors analyze the economic effects of immigration on the United States and selected source areas, with a focus on Puerto Rico and El Salvador. They examine the education and job performance of foreign-born workers; assimilation, fertility, and wage rates; and the impact of remittances by immigrants to family members on the overall gross domestic product of source areas. A revealing and original examination of a topic of growing importance, this book will stand as a guide for further research on immigration and on the economies of developing countries.
Download or read book High Skilled Migration to the United States and Its Economic Consequences written by Gordon H. Hanson and published by University of Chicago Press. This book was released on 2018-06-15 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: Immigration policy is one of the most contentious public policy issues in the United States today. High-skilled immigrants represent an increasing share of the U.S. workforce, particularly in science and engineering fields. These immigrants affect economic growth, patterns of trade, education choices, and the earnings of workers with different types of skills. The chapters in this volume go beyond the traditional question of how the inflow of foreign workers affects native employment and earnings to explore effects on innovation and productivity, wage inequality across skill groups, the behavior of multinational firms, firm-level dynamics of entry and exit, and the nature of comparative advantage across countries.
Download or read book The Indirect Fiscal Benefits of Low skilled Immigration written by Mark Colas and published by . This book was released on 2020 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: Low-skilled immigrants indirectly affect public finances through their effect on native wages & labor supply. We operationalize this general-equilibrium effect in the workhorse labor market model with heterogeneous workers and intensive and extensive labor supply margins. We derive a closed-form expression for this effect in terms of estimable statistics. We extend the analysis to various alternative specifications of the labor market and production that have been emphasized in the immigration literature. Empirical quantifications for the U.S. reveal that the indirect fiscal benefit of one low-skilled immigrant lies between $770 and $2,100 annually. The indirect fiscal benefit may outweigh the negative direct fiscal effect that has previously been documented. This challenges the perception of low-skilled immigration as a fiscal burden.
Download or read book High skilled Migration written by Mathias Czaika and published by Oxford University Press. This book was released on 2018 with total page 402 pages. Available in PDF, EPUB and Kindle. Book excerpt: Political and scientific debates on migration policies have mostly focused on governments' efforts to control or reduce low-skilled, asylum, and irregular migration or to encourage the return migration of these categories. Less research and constructive discourse has been conducted on the role and effectiveness of policies to attract or retain high-skilled workers. An improved understanding of the drivers and dynamics of high-skilled migration is essential for effective policy-making, as most highly developed and emerging economies experience growing shortages of high-skilled labour supply in certain occupations and sectors, and skilled immigration is often viewed as one way of addressing these. Simplistic assumptions that high-skilled migrants are primarily in pursuit of higher wages raise the expectation that policies which open channels for high-skilled immigration are generally successful. Although many countries have introduced policies aimed at attracting and facilitating the recruitment of high-skilled workers, not all recruitment efforts have had the desired effects, and anecdotal evidence on the effectiveness of these programmes is rather mixed. The reason is that the rather narrow focus on migration policy coincides with a lack of systematic and rigorous consideration of other economic, social, and political drivers of migration, which may be equally - or sometimes even more - important than migration policies per se. A better understanding of migration policies, their making, consequences and limitations, requires a systematic knowledge of the broader economic, social and political structures and their interaction in both origin and destination countries. This book enhances this vibrant field of social scientific enquiry by providing a systematic, multidisciplinary, and global analysis of policies driving international high-skilled migration processes in their interaction with other migration drivers at the individual, city, national, and international level.
Download or read book From the Farm to the City written by Zachariah Judson Rutledge and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past few decades, the United States (U. S.) has experienced a massive influx of low-skilled immigrants. Between 1990 and 2018, the total immigrant population increased from 20 million (8% of the population) to 45 million (14% of the population). However, not all low-skilled sectors of the economy have consistently experienced positive immigrantlabor supply shocks. For example, recent evidence suggests that the agricultural sector has experienced a decline in the supply of immigrant workers. Mexican and Central American immigrants are by far the largest group of low-skilled immigrants in the U. S., comprising half of the immigrant population with a high school education or less. About 80% of Mexican and Central American immigrants have at most a high school diploma, and they are typically employed in low-skilled sectors of the economy, such as agriculture and construction. Estimates suggest that 11 million unauthorized immigrants reside in the U. S., 8 million of whom are Mexican and Central American. The issue of unauthorized immigration has led to a contentious debate, driving a wedge between Americans. Opponents of immigration argue that these immigrants take American jobs, depress the wages of native-born workers (natives), and drain resources from the social welfare system. Proponents argue that these immigrants take low-paying, physically demanding jobs that Americans don't want, which reduces the cost of goods and services, and that immigrants often contribute to the tax base even if they are unauthorized to work. Economists have failed to come to a consensus on the debate, partly because it is difficult to find empirical settings that lend themselves to producing exogenous variation in the supply of immigrants. It is plausible that elements on both sides of the debate are valid to some extent, depending on the outcome of interest and the economic sector under consideration. In this dissertation, I examine how changes in the supply of low-skilled immigrants affect various outcomes in the U. S. and the extent to which these immigrants have been able to achieve economic success. The first chapter examines how a decline in the supply of immigrant farmworkers impacts labor-intensive crop production in the state of California. The second chapter investigates how increased immigration impacts native workers in non-farm sectors of the economy. The third chapter documents the extent to which Mexicans and Central Americans have been able to close the earnings and employment rate gap (relative to native workers) over time. As a whole, this dissertation sheds light on how low-skilled immigration creates winners and losers and documents the extent to which immigrants have been successful in assimilating into the U. S. labor market. Chapter 1 extends the existing farm labor literature, which has found evidence of a declining farm labor supply, by quantifying the impacts such changes have on labor-intensive crop production. Specifically, I provide reduced-form estimates of the effects of shifts in the farm labor supply on the production of hand-harvested fruits and vegetables. Using crop production and employment data from California between 1990 and 2017, I estimate fixed-effects panel regressions linking farm employment (measured at the county-year level) to crop production outcomes (measured at the crop-county-year level). Because I use variation in equilibrium employment, as opposed to exogenous variation in the labor supply, I use an equilibrium displacement model to identify plausible sources of bias that may affect my empirical estimates. This exercise reveals that my point estimates should be interpreted as upper bounds for the effects of interest. Empirically, these bounds indicate that a one percent decrease in the farm labor supply (in terms of the number of workers) causes at most a 0.37% reduction in production in the top 10 producing counties, which together produce 86% of the total value of hand-harvested crops in the state. Production effects are channeled primarily through a reduction in harvested acreage, although there are some effects on yield. I also find that a 1% decrease in the labor supply causes at most a 0.46% decrease in the total value of hand-harvested crop production in the top 5 producing counties (or $600 million). The results from this chapter indicate that a declining farm labor supply could generate economically meaningful consequences for farmers, but that it will likely not devastate the aggregate production of fruits and vegetables in the near future. Chapter 2 analyzes the impact of immigration on the labor market outcomes of native workers in the U. S. The analysis focuses on workers in U. S. metropolitan statistical areas using U. S. Census and American Community Survey data between 1990 and 2011. We use a set of imperfect instruments to derive new bounds on the short-run impacts ofimmigration on the earnings, employment rate, and full-time employment rate of natives. We focus on nine sectors with higher immigrant penetration and instrument for the sectoral immigrant share using the immigrant share in all other sectors. We find negative effects of immigration on native earnings in sectors where we would most expect to findthem: low-skilled sectors that produce non-traded goods where immigrant penetration has been high in recent decades. We uncover negative effects on native earnings in the construction, food service, and personal service sectors, with upper bounds ranging from -2.9% to -6.6% for each 10 percentage point increase in the immigrant share. Earnings effects in other sectors are not statistically significant. In the six low-skilled sectors we consider, immigration reduces the native employment rate, with effects ranging from -0.6 to -2.0 percentage points for each 10 percentage point increase in the immigrant share. Our findings indicate that increases in the low-skilled immigrant labor supply lead to worse labor market outcomes for some low-skilled native workers in the short run. Chapter 3 investigates whether recently arrived low-skilled immigrants have been more successful than older cohorts at assimilating into the U. S. labor market. Specifically, we use U. S. Census and American Community Survey data between 1970 and 2017 to examine how different Mexican and Central American cohorts of arrival compare to similarly aged and educated natives in terms of their earnings and employment rate over time. We find that, on average, they started with an earnings gap of 40-45 percent and eliminated half of it within 20 years of arrival. Recent cohorts that arrived after 1995 did better than earlier cohorts in terms of the initial gap and the convergence rate. All cohorts achieved employment rates that surpassed that of natives within 20 years of arrival. The most recent cohorts arrived in the U. S. with no employment rate gap. We conclude that Mexican and Central American immigrants enter the U. S. with a strong proclivity toward being employed. However, despite their successful integration into the labor market in terms of achieving gainful employment, they have not reached parity with their native counterparts in terms of earnings.
