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Originally published in 1987, this book presents a novel approach to the study of competition between immigrant groups and native minorities (teenagers, women, and black men) in low-wage labor markets.
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.
Economics of Immigration provides students with the tools needed to examine the economic impact of immigration and immigration policies over the past century. Students will develop an understanding of why and how people migrate across borders and will learn how to analyze the economic causes and effects of immigration. The main objectives of the book are for students to understand the decision to migrate; to understand the impact of immigration on markets and government budgets; and to understand the consequences of immigration policies in a global context. From the first chapter, students will develop an appreciation of the importance of immigration as a separate academic field within labor economics and international economics. Topics covered include the effect of immigration on labor markets, housing markets, international trade, tax revenues, human capital accumulation, and government fiscal balances. The book also considers the impact of immigration on what firms choose to produce, and even on the ethnic diversity of restaurants and on financial markets, as well as the theory and evidence on immigrants’ economic assimilation. The textbook includes a comparative study of immigration policies in a number of immigrant-receiving and sending countries, beginning with the history of immigration policy in the United States. Finally, the book explores immigration topics that directly affect developing countries, such as remittances, brain drain, human trafficking, and rural-urban internal migration. Readers will also be fully equipped with the tools needed to understand and contribute to policy debates on this controversial topic. This is the first textbook to comprehensively cover the economics of immigration, and it is suitable both for economics students and for students studying migration in other disciplines, such as sociology and politics.
From "America’s leading immigration economist" (The Wall Street Journal), a refreshingly level-headed exploration of the effects of immigration. We are a nation of immigrants, and we have always been concerned about immigration. As early as 1645, the Massachusetts Bay Colony began to prohibit the entry of "paupers." Today, however, the notion that immigration is universally beneficial has become pervasive. To many modern economists, immigrants are a trove of much-needed workers who can fill predetermined slots along the proverbial assembly line. But this view of immigration’s impact is overly simplified, explains George J. Borjas, a Cuban-American, Harvard labor economist. Immigrants are more than just workers—they’re people who have lives outside of the factory gates and who may or may not fit the ideal of the country to which they’ve come to live and work. Like the rest of us, they’re protected by social insurance programs, and the choices they make are affected by their social environments. In We Wanted Workers, Borjas pulls back the curtain of political bluster to show that, in the grand scheme, immigration has not affected the average American all that much. But it has created winners and losers. The losers tend to be nonmigrant workers who compete for the same jobs as immigrants. And somebody’s lower wage is somebody else’s higher profit, so those who employ immigrants benefit handsomely. In the end, immigration is mainly just another government redistribution program. "I am an immigrant," writes Borjas, "and yet I do not buy into the notion that immigration is universally beneficial…But I still feel that it is a good thing to give some of the poor and huddled masses, people who face so many hardships, a chance to experience the incredible opportunities that our exceptional country has to offer." Whether you’re a Democrat, a Republican, or an Independent, We Wanted Workers is essential reading for anyone interested in the issue of immigration in America today.
“[Cass’s] core principle—a culture of respect for work of all kinds—can help close the gap dividing the two Americas....” – William A. Galston, The Brookings Institution The American worker is in crisis. Wages have stagnated for more than a generation. Reliance on welfare programs has surged. Life expectancy is falling as substance abuse and obesity rates climb. These woes are not the inevitable result of irresistible global and technological forces. They are the direct consequence of a decades-long economic consensus that prioritized increasing consumption—regardless of the costs to American workers, their families, and their communities. Donald Trump’s rise to the presidency focused attention on the depth of the nation’s challenges, yet while everyone agrees something must change, the Left’s insistence on still more government spending and the Right’s faith in still more economic growth are recipes for repeating the mistakes of the past. In this groundbreaking re-evaluation of American society, economics, and public policy, Oren Cass challenges our basic assumptions about what prosperity means and where it comes from to reveal how we lost our way. The good news is that we can still turn things around—if the nation’s proverbial elites are willing to put the American worker’s interests first. Which is more important, pristine air quality, or well-paying jobs that support families? Unfettered access to the cheapest labor in the world, or renewed investment in the employment of Americans? Smoothing the path through college for the best students, or ensuring that every student acquires the skills to succeed in the modern economy? Cutting taxes, expanding the safety net, or adding money to low-wage paychecks? The renewal of work in America demands new answers to these questions. If we reinforce their vital role, workers supporting strong families and communities can provide the foundation for a thriving, self-sufficient society that offers opportunity to all.
Batalova examines how the presence of skilled immigrants impacts the earnings of men and women, native born and immigrant. Skilled workers benefit from working with immigrants. However, there is a tipping point after which working with more immigrants is associated with a decline in earnings for all. In addition, female-dominated jobs are associated with lower earnings for all, regardless of nativity or gender. Overall, Batalova challenges the exclusive focus on immigrants as individual workers when discussing the economic impacts of immigration. Instead, she suggests placing the immigrant-native competition debate within the larger context of the American economy characterized by deepening labor market segmentation, occupational segregation, and gender inequality.
Since the 1970s, the striking increase in immigration to the United States has been accompanied by a marked change in the composition of the immigrant community, with a much higher percentage of foreign-born workers coming from Latin America and Asia and a dramatically lower percentage from Europe. This timely study is unique in presenting new data sets on the labor force, wage rates, and demographic conditions of both the U.S. and source-area economies through the 1980s. The contributors analyze the economic effects of immigration on the United States and selected source areas, with a focus on Puerto Rico and El Salvador. They examine the education and job performance of foreign-born workers; assimilation, fertility, and wage rates; and the impact of remittances by immigrants to family members on the overall gross domestic product of source areas. A revealing and original examination of a topic of growing importance, this book will stand as a guide for further research on immigration and on the economies of developing countries.
This report finds that immigrants have been hit somewhat harder by the current recession than have native-born Americans. Immigrants (legal and illegal) now have significantly higher unemployment than natives. This represents a change from the recent past, when native-born Americans typically had higher unemployment rates. The picture is complex, with the least and most educated immigrants experiencing the largest increases in unemployment relative to natives. However, the least educated immigrants still have a lower unemployment rate than their native-born counter parts. Tables and graphs.
I have worried about the talk, in recent times, that immigrants hurt the wages of native workers in the host nation. If so, that is not a good outcome. Why should native workers lose out to immigrants? To come to terms with my worry, I began to experiment with a classic dataset on immigrants and native worker wages, which was assembled about 15 years ago. At that time, this dataset appeared to signal that there exists an immigrant effect independent of skill set (e.g., education) that reduces the wages of native workers. Specifically, the indication was that the proportion of immigrant workers (p) is a standalone exogenous variable, among others, in a linear regression model that can explain native worker wages without including, in the model, the interaction of p with skill set. In my experimentation, I find that p cannot be a standalone variable in the model and at the same time: 1) be competitive in terms of cross validation predicted residual error sum of squares; and 2) be immune to the shocks from ridge regression, for small values of the ridge tuning parameter. My experiments indicate that immigration differentially impacts native worker wages across skill sets. In particular, for a 10% increase in immigrants, the average wage of native workers is impacted as follows: a) there is about a 5% drop (in native worker wages) for High school dropouts; b) about an 8% drop for High school graduates; c) about a 2% rise for those with some college education; and d) about a 6% rise for College graduates. This impact is, generally, monotonic in skill. Based on my experiments, I am led to cultivate the view that the overall (or net) impact of immigrants on native worker wages is based on their skill set shares. Several researchers have found little overall impact of immigrants on native worker wages; and, based on my view, it is not at all clear to me that there is anything unreasonable about their finding. That being said, Governments should nudge, and facilitate, native workers to acquire skills beyond those a High school education can provide; and ensure that labor market tests are correctly applied, especially in circumstances where it becomes quite difficult to price the deployment of a lower level skill like mopping the floor or driving a truck. Disciplined immigration will not harm the fabric of a nation. Economic inequality will.