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Do Immigrants Steal American Jobs? Evidence from Economics Nimish Adhia, Assistant Professor of Economics January 27 th, 2016, Manhattanville College Library.

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Presentation on theme: "Do Immigrants Steal American Jobs? Evidence from Economics Nimish Adhia, Assistant Professor of Economics January 27 th, 2016, Manhattanville College Library."— Presentation transcript:

1 Do Immigrants Steal American Jobs? Evidence from Economics Nimish Adhia, Assistant Professor of Economics January 27 th, 2016, Manhattanville College Library

2 The American economy needs immigrant workers. The belief that immigrants take jobs that can otherwise be filled by hard-working Americans has been disputed by an overwhelming number of economic research studies and data. Removing the approximately 8 million unauthorized workers in the United States would not automatically create 8 million job openings for unemployed Americans, said Daniel Griswold, director of the Cato Institute's Center for Trade Policy Studies. The reason, according to the U.S. Chamber of Commerce, is two-fold. For one, removing millions of undocumented workers from the economy would also remove millions of entrepreneurs, consumers and taxpayers. The economy would actually lose jobs. Second, native-born workers and immigrant workers tend to possess different skills that often complement one another. According to Griswold, immigrants, regardless of status, fill the growing gap between expanding low-skilled jobs and the shrinking pool of native-born Americans who are willing to take such jobs. By facilitating the growth of such sectors as retail, agriculture, landscaping, restaurants, and hotels, low-skilled immigrants have enabled those sectors to expand, attract investment, and create middle-class jobs in management, design and engineering, bookkeeping, marketing and other areas that employ U.S. citizens. Source: http://money.cnn.com/2014/11/20/news/economy/immigration-myths/

3 Immigrant Population vs. Unemployment Rate

4 Mariel Boat Lift Study Study conducted in 1990 by David Card of UC Berkeley Found no effect on the wages or unemployment rates on US-born workers in Miami The labor force of Miami increased 7% within 4 months.

5 Russian Jews Exodus Study Study conducted by Rachel Friedberg, an economist at Brown University About 600,000 Russian Jews in the early 1990s moved to Israel, increasing its population by 14%. Found no effect on the wages and unemployment rates of Israeli-born workers.

6 George Borjas, Harvard University As a result of immigration from 1970 – 2000, the wages of U.S. born high-school drop outs are 3 to 5% lower than they would otherwise be. All other groups experienced gains in wages. (1999)

7 Giovanni Peri, UC Davis The long term impact of immigration into the US from 1996-2006, the was to increase the average wages of U.S. workers (including the lowest skilled) by 1%.

8 +680% Effect on Wages as a Result of Immigration into the US

9 Immigrants in the US are over-represented at the extremes of the education distribution

10 In Sum, the Effect of Immigrants in the U.S. is to decrease slightly the wages of U.S. workers without a high school diploma benefit the rest of the Americans by  lowering prices of goods and services  complementing the skills of US workers  expanding the economy and allowing for greater specialization and productivity

11 Who other than Immigrants Steals American Jobs? http://cnet.co/1v7z11b


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