Rethinking the Effects of Immigration on Wages

Via AILA
10/03/2006

A crucial question in the current debate over immigration is what
impact immigrants have on the wages of native-born workers. At first
glance, it might seem that the simple economics of supply and demand
provides the answer: immigrants increase the supply of labor; hence
they should decrease the wages of native workers. However, the reality
is more complicated than this.

The latest study published by the Immigration Policy Center
addresses this issue. The study, authored by Giovanni Peri, Associate
Professor of Economics at the University of California, Davis, and a
Faculty Research Fellow at the National Bureau of Economic Research in
Cambridge, Massachusetts, is entitled <!–
D(["mb",""Rethinking the Effects of Immigration on Wages: New Data and Analysis from 1990 2004." In the study, Professor Peri argues that the widespread notion that immigrants decrease native wages is a misconception, complicated by two reasons that too often are overlooked. First, immigrants and natives, with different skills and education levels, do not compete with each other for the same jobs, but actually complement each other performing interdependent jobs, thereby increasing the wages and productivity of natives. Second, evidence shows that new workers added to the labor force stimulate investment by entrepreneurs. When these two factors are included in the analysis of immigration and wages, it becomes clear that immigration has a positive effect on the wages of most native-born workers.
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For a detailed analysis of Professor Peri\’s findings, read the full report here. \n\n

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Hold Members of Congress Accountable at Town Hall Meetings

\n\nIncumbent Candidates are back in their home districts making the most of the pre-election season. Many are hosting Town Hall meetings. This is a good way for them to get out and talk to their constituents and "take the pulse" of the communities they represent in Congress. It is also a great opportunity for AILA members to educate and inform Senators, Representatives, and other meeting attendees about the need for comprehensive immigration reform, H-1B relief, and other key AILA concerns. Consider attending a Town Hall meeting with your AILA colleagues to show collective support for your shared ideals. Generating a large and well-informed crowd at a public meeting is an extremely effective way to elicit the views of your Member of Congress and to share your perspective. Use AILA\’s “,1]
);
//–>“Rethinking the Effects of Immigration on Wages: New Data and Analysis from 1990 2004.”
In the study, Professor Peri argues that the widespread notion that
immigrants decrease native wages is a misconception, complicated by two
reasons that too often are overlooked. First, immigrants and natives,
with different skills and education levels, do not compete with each
other for the same jobs, but actually complement each other performing
interdependent jobs, thereby increasing the wages and productivity of
natives. Second, evidence shows that new workers added to the labor
force stimulate investment by entrepreneurs. When these two factors are
included in the analysis of immigration and wages, it becomes clear
that immigration has a positive effect on the wages of most native-born
workers.

For a detailed analysis of Professor Peri’s findings, read the full report here.

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