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Does Immigration Affect Wages? - Federal Reserve Bank Of Atlanta - Frbatlanta
Get Does Immigration Affect Wages? - Federal Reserve Bank Of Atlanta - Frbatlanta
King Paper 2003-2a August 2003 Does Immigration Affect Wages? A Look at Occupation-Level Evidence Pia M. Orrenius Federal Reserve Bank of Dallas Madeline Zavodny Federal Reserve Bank of Atlanta Abstract: Previous research has reached mixed conclusions about whether higher levels of immigration reduce the wages of natives. This paper reexamines this question using data from the Current Population Survey and the Immigration and Naturalization Service and focuses on differential effects by skill l.
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Zavodny FAQ
As a result, many of the recent immigrants end up in jobs like restaurant and hotel work, lawn care, and janitorial work. This kind of immigration represents a shift to the right in the supply of unskilled labor for a number of jobs, which will lead to lower wages for these jobs.
Wage inequities grow wider for immigrants depending on their immigration status. Across the state, in 2019, the median hourly wage for naturalized immigrants was $24, compared to $19 for lawful residents, and $13 for undocumented immigrants.
Literature on the U.S. labor market suggests the wage elasticity of immigration is about −0.2, meaning that if the number of migrants were to increase by 10 percent, then wages would fall by 2 percent, on average.
Decades of research have provided little support for the claim that immigrants depress wages by competing with native workers. Most studies for industrialized countries have found, on average, no effect on the wages of native workers.
Economically, those in favor of immigration argue that immigrants boost the economy by increasing the labor supply and promoting innovation. Those against argue that immigrants harm low-skilled laborers by taking jobs that American workers would otherwise get or depressing wages for native-born low-skilled workers.
Immigrants contribute to the U.S. economy through the supply of labor as well as through entrepreneurship. Entrepreneurs increase the demand for labor by creating job vacancies and therefore increasing labor tightness (Azoulay et al. 2022).
Wage inequality among immigrants is higher than among non-immigrants, and including immigrants in the population raises overall wage inequality. Nevertheless, the low number of immigrants relative to the native population makes the compositional effect on the overall earnings distribution small.
Immigrants contribute to the U.S. economy through the supply of labor as well as through entrepreneurship. Entrepreneurs increase the demand for labor by creating job vacancies and therefore increasing labor tightness (Azoulay et al. 2022).
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