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Greg Siskind on Immigration Law and Policy

NEW STUDY SHOWS IMMIGRANTS ACTUALLY PUSH UP WAGES FOR NATIVE WORKERS

Rating: 2 votes, 5.00 average.

A new report from the Economic Policy Institute makes the case that immigrants at all wage levels actually lift wages for US workers:

A key result from this work is that the estimated effect of immigration from 1994 to 2007 was to raise the wages of U.S.-born workers, relative to foreign-born workers, by 0.4% (or $3.68 per week), and to lower the wages of foreign-born workers, relative to U.S.-born workers, by 4.6% (or $33.11 per week). In other words, any negative effects of new immigration over this period were felt largely by the workers who are the most substitutable for new immigrants--that is, earlier immigrants.

Additional key results from this analysis:

oFor workers with less than a high school education, the relative wage effect of immigration was similar to the overall effect. U.S.-born workers with less than a high school education saw a relative 0.3% increase in wages (or $1.58 per week), while foreign-born workers with less than a high school education saw a relative 3.7% decrease in wages (or $15.71 per week). In other words, immigration among workers with less than a high school degree served to lower the relative wages of other immigrant workers with less than a high school degree, not native workers with less than a high school degree.
oThe wages of male U.S.-born workers with less than a high school education were largely unaffected by immigration over this period, experiencing a relative decline of 0.2% due to immigration (or $1.37 per week). Female U.S.-born workers with less than a high school education experienced a relative increase in wages of 1.1% due to immigration ($4.19 per week).
oAround 3% of the increase from 1994 to 2007 in wage inequality between workers with less than a high school degree and workers with a college degree or more can be attributed to immigration.
oThis analysis finds no evidence that young workers in particular are adversely affected by immigration.
oWhile the methodology used in this paper does not allow for a racial breakdown of the effect of immigration on U.S.-born workers in different education groups, we find that the overall effect of immigration on wages is similar for white non-Hispanic U.S.-born workers (+0.5%) and black non-Hispanic U.S.-born workers (+0.4%) .
oFrom 1994 to 2007, the effect of immigration on wages did not vary greatly over periods of very different labor demand, in part, because immigration flows respond strongly to the conditions of the U.S. economy.
oAn analysis of the four states with the highest immigration over this period--California, Florida, New York, and Texas--revealed some interesting departures from the national average. In these states, like at the national level, the overall relative effect of immigration was positive on native workers. However, some subgroups in these states fared worse--particularly male workers with less than a high school degree.

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Comments

  1. Another Voice's Avatar
    Maybe the politicians should pay attention to this growing problem!!

    Will Baby Boomers Bankrupt Social Security?

    http://www.cnbc.com/id/34941334

    Immigrants also contribute to these programs!!!
  2. Adi's Avatar
    For a problem in 2043 do you expect lazy govt to start worrying about it now? Medicare is much more severe than SS and see what they are doing about it. Its a mess. What did they do about financial reform? Climate change? Outsourcing? Healthcare? Immigration? Iraq war? Afghanistan war? Iran/N.Korea? Wall street gambling/bonuses?etc etc etc
    This govt is in a deadlock. What Washington does Obama blame? He and Democrats (with super-majority in both) are Washington.
  3. George Chell's Avatar
    If Charles Grassley has his way we will not receive social security. His anti-H1B means more jobs move abroad and even if Americans work abroad, they will pay taxes abroad, not here. And if Grassley has his way he will force Americans abroad to pay US taxes which means more foreigners will be hired, and we will end up loosing the tax revenue we get (US citizens working abroad pay taxes on incomes over $82,000)..All this equals social security and medicare bankruptcy and dramatic cuts in payouts. The strategy should be to create jobs here and keep them here, but our politicians dont seem too interested.
  4. john's Avatar
    you said it right GC.
    democratic party has a big problem. they are turning against legal immigrants and h1b's. the results will be more jobs lost to overseas. coy's will even split up into city singapore ltd etc . i thought obama is an intelligent guy who can understand the underlying issues of this restrictive approaches to trade/tax policies. they dont get it. ofcourse this will make them loose most senate seats soon.supporting illegal immigrants may get them votes but economy will grow only if they support legal immigration and expand the trade policies.
    And if they screw economy democrats will fail evenif they get hispanic votes.

    why can't these people understand economics?. when you destroyed consulting industry(including a lot of american consulting companies) by EE rules, they have destroyed jobs(leave alone job growth).May be the people in these high positions never get chance to understand
  5. Legal and no longer waiting's Avatar
    Republicans were doing just as well as Democrats - remember, the last positive thing that came out was on the push of Clinton.

    The problem is not politicians. The problem are the people of the US, who think they can increase spending and cut taxes at the same time. Solve the healthcare crisis wihtout extending coverage or hurting the insorance companies. Gain 100 lb and not get a heart attack. Not raise standards of education, and still lead the world in innovation. You get the picture. They also want job growth (and no outsourcing), but no H1Bs. Their roofs fixed, but no Mexican workers. Republicans are acutally the worst in catering to those who want never want to pay the price.
  6. George Chell's Avatar
    "The problem is not politicians. The problem are the people of the US, who think they can increase spending and cut taxes at the same time. Solve the healthcare crisis wihtout extending coverage or hurting the insorance companies. Gain 100 lb and not get a heart attack. Not raise standards of education, and still lead the world in innovation. You get the picture. They also want job growth (and no outsourcing), but no H1Bs. Their roofs fixed, but no Mexican workers. Republicans are acutally the worst in catering to those who want never want to pay the price."

    When the people are given just the choice of tax cuts or no tax increase, they vote for both. But, when they are forced to make the cuts, as they were forced recently in Oregon, they chose tax increase. American people are the problem! As far as oursourcing is concerned, shot of capital controls, no one can do anything about it, short of reforming immigration. Singapore firms outsource skilled work the least, because Singapore has no limits on skilled foreign workers.
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