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The Economic Impact of Immigration

Do Immigrants Pull their Weight?


1970 1980 1990
Natives:
Education (years) 11.5 12.7 13.2
Percent on Public Ass. 6.0 7.9 7.4
Immigrants:
Education (years) 10.7 11.7 11.6
Wage Differential w/native +0.9 -9.2 -15.2
Percent on Public Ass. 5.9 8.7 9.1

What is the Overall Cost of Immigration?


 Immigrants cost $60 billion and produce $51 billion in a $7 trillion economy.
 “In an economy the size of the U.S., this effect is small”: about 1%

Taking Away Jobs of Natives?


 “The great majority of studies conclude that immigrants rarely force a native
worker out of a job.”
 A city with 10% more immigration than another will have wages that are 1
percent lower: a $10.00 per hour wage falls to $9.90.
Source: Borjas, George J., Journal of Economic Literature, Dec. 1994, p. 1668

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