The Labor Demand Curve Is... Upward Sloping? The Wage Effects of Immigration and Women's Entry Into the US Labor Force, 1960-2010 PDF Download

Author: Alan de Brauw
Publisher:
ISBN:
Category :
Languages : en
Pages : 43

View

Book Description
The debate over the wage effects of immigration for native workers is an old one. One side of the debate claims that immigration has little if any negative impact on wages among natives, whereas others suggest that immigration has large, negative effects on native wages. On the latter side of the debate, many point to the work of Borjas (2003) who takes a national view of the US economy and estimates a wage elasticity of -0.4 with respect to immigration. In this paper, we replicate and update Borjas with the 2010 US census data, and use the method to study an even larger, concurrent labor supply shock, namely the entry of women into the labor force. We both find a much lower wage elasticity than Borjas to immigration (-0.2), and estimate a positive, statistically significant relationship between men's wages and women's entry into education-experience cells when wages are annualized. We take this evidence to suggest that the Borjas model is mis-specified as it inadequately specifies substitution between immigrants and natives, and inadequately controls for structural change in the US economy.

Author: Alan de Brauw
Publisher:
ISBN:
Category :
Languages : en
Pages : 40

View

Book Description
The debate over the wage effects of immigration for native workers is an old one. One side of the debate claims that immigration has little if any negative impact on wages among natives, whereas others suggest that immigration has large, negative effects on native wages. On the latter side of the debate, many point to the work of Borjas (2003), who takes a national view of the US economy and estimates a wage elasticity of -0.4 with respect to immigration. In this paper, we replicate and update Borjas with the 2010 US census data, and use the method to study an even larger, concurrent labor supply shock, namely the entry of women into the labor force. We both find a much lower wage elasticity than Borjas to immigration (-0.2) and estimate a positive, statistically significant relationship between men's wages and women's entry into education-experience cells when wages are annualized. We take this evidence to suggest that the Borjas model is misspecified as it inadequately specifies substitution between immigrants and natives, and inadequately controls for structural change in the US economy.

Author: National Academies of Sciences, Engineering, and Medicine
Publisher: National Academies Press
ISBN: 0309444454
Category : Social Science
Languages : en
Pages : 643

View

Book Description
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.

Author: George J. Borjas
Publisher:
ISBN:
Category : Foreign workers
Languages : en
Pages : 54

View

Book Description
Immigration is not evenly balanced across groups of workers that have the same education but differ in their work experience, and the nature of the supply imbalance changes over time. This paper develops a new approach for estimating the labor market impact of immigration by exploiting this variation in supply shifts across education-experience groups. I assume that similarly educated workers with different levels of experience participate in a national labor market and are not perfect substitutes. The analysis indicates that immigration lowers the wage of competing workers: a 10 percent increase in supply reduces wages by 3 to 4 percent

Author: Andrea Ariu
Publisher:
ISBN:
Category : Emigration and immigration
Languages : en
Pages : 0

View

Book Description
In this paper, we provide new explanations for the puzzling findings in the literature that migrants do not decrease natives' wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and heterogeneous firms in which workers of different skill levels are imperfect substitutes, but for a given skill level, natives and migrants are perfect substitutes within a firm. In this setting, a skilled labor supply shock due to immigration has two consequences. First, it induces skill-intensive firms and skill-abundant regions to expand. These across-firm and across-region reallocations reduce the within-firm and within-region substitution between skilled and unskilled workers, thus limiting relative wage adjustments. Second, the average native's wage can be partially sheltered from the negative effect of immigration depending on the geographical settlement patterns of immigrants. Both mechanisms make natives and migrants appear as imperfect substitutes at the aggregate level. Quantitatively, our simulations show that the negative impact of immigration on natives' wage is halved when the across-firm and across-region reallocation mechanisms are at work. Finally, both theory and simulations show that when these mechanisms are coupled with human-capital externalities that are skill-neutral at the firm level but skill-biased on aggregate, skilled immigration can increase absolute and relative skilled wages. Therefore, firm heterogeneity, local labor markets, and human-capital externalities are crucial for understanding the impact of immigration on natives' wages.

Author: Neeraj Kaushal
Publisher: Columbia University Press
ISBN: 0231543603
Category : Social Science
Languages : en
Pages : 215

View

Book Description
Immigration is shaking up electoral politics around the world. Anti-immigration and ultranationalistic politics are rising in Europe, the United States, and countries across Asia and Africa. What is causing this nativist fervor? Are immigrants the cause or merely a common scapegoat? In Blaming Immigrants, economist Neeraj Kaushal investigates the rising anxiety in host countries and tests common complaints against immigration. Do immigrants replace host country workers or create new jobs? Are they a net gain or a net drag on host countries? She finds that immigration, on balance, is beneficial to host countries. It is neither the volume nor pace of immigration but the willingness of nations to accept, absorb, and manage new flows of immigration that is fueling this disaffection. Kaushal delves into the demographics of immigrants worldwide, the economic tides that carry them, and the policies that shape where they make their new homes. She demystifies common misconceptions about immigration, showing that today’s global mobility is historically typical; that most immigration occurs through legal frameworks; that the U.S. system, far from being broken, works quite well most of the time and its features are replicated by many countries; and that proposed anti-immigrant measures are likely to cause suffering without deterring potential migrants. Featuring accessible and in-depth analysis of the economics of immigration in worldwide perspective, Blaming Immigrants is an informative and timely introduction to a critical global issue.

Author: Timothy J. Hatton
Publisher:
ISBN:
Category : Labor market
Languages : en
Pages : 76

View

Book Description

Author: OECD
Publisher: OECD Publishing
ISBN: 9264291822
Category :
Languages : en
Pages : 170

View

Book Description
How Immigrants Contribute to Argentina’s Economy is the result of a project carried out by the OECD Development Centre and the International Labour Organization, with support from the European Union.

Author: OECD
Publisher: OECD Publishing
ISBN: 9264302034
Category :
Languages : en
Pages : 147

View

Book Description
How Immigrants Contribute to Ghana’s Economy is the result of a project carried out by the OECD Development Centre and the International Labour Organization, with support from the European Union.

Author: Claudia Goldin
Publisher: Harvard University Press
ISBN: 0674037731
Category : Business & Economics
Languages : en
Pages : 497

View

Book Description
This book provides a careful historical analysis of the co-evolution of educational attainment and the wage structure in the United States through the twentieth century. The authors propose that the twentieth century was not only the American Century but also the Human Capital Century. That is, the American educational system is what made America the richest nation in the world. Its educational system had always been less elite than that of most European nations. By 1900 the U.S. had begun to educate its masses at the secondary level, not just in the primary schools that had remarkable success in the nineteenth century. The book argues that technological change, education, and inequality have been involved in a kind of race. During the first eight decades of the twentieth century, the increase of educated workers was higher than the demand for them. This had the effect of boosting income for most people and lowering inequality. However, the reverse has been true since about 1980. This educational slowdown was accompanied by rising inequality. The authors discuss the complex reasons for this, and what might be done to ameliorate it.