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Saturday, August 05, 2006

Illegal Immigration Raises the Wages of Most Americans

Via Migra Matters (I love this blog!)

The study in question was done by the National Bureau of Economic Research. It is entitled:
Rethinking the Effects of Immigration on Wages

Some findings:

First, the average wage of US-born workers experiences a significant increase (rather than a decrease) as a consequence of immigration. This results is the consequence of the imperfect substitutability between U.S. and Foreign born workers so that immigration increases wages of U.S.-born at the expenses of a decrease in wages of other foreign-born workers (previous immigrants).

Second, the group of least educated U.S.-born workers suffers a significantly smaller wage loss than previously calculated. The fact that uneducated foreign-born do not fully and directly substitute for (compete with) uneducated natives, but partly complement their skills, is the reason for this attenuation.

Thirdly, all the other groups of US-born workers (with at least an high school degree) who accounted for 90% of the U.S.-born labor force in 2004, gain from immigration.

Finally, even considering only the relative effect of immigration on real wages of natives, namely its contribution to the widening of the College-High School Dropouts gap and of the College-High School gap, we find only a small contribution of immigration to the first and an even negative contribution (i.e. reduction of the gap) on the second for the 1990-2004 period. The group whose wage is most negatively affected by immigration is, in our analysis, the group of previous immigrants who, however, probably have the largest non-economic benefits from the immigration of spouses, relatives or friends making them willing to sustain those losses.

I don't expect anyone to read the 53 page study, so I suggest reading the Migra Matters post and summary. The link is found at the top of this post.

Extra: Study Finds that immigrants play no role in the Health care crisis (Once again I love you Migra Matters!)

Shssss, don't nobody tell Lou Dobbs and his nativist GOP allies, their heads might explode.

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