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304 pages, Hardcover
Published January 17, 2022
As journalist Roger Lowenstein points out in his New York Times profile of Borjas, the number of immigrants in the US labor force far surpasses the total number of unemployed: “[T]he majority of immigrants can’t literally have ‘taken’ jobs; they must be doing jobs that wouldn’t have existed had the immigrants not been here.
[Researchers] examine wage changes within firms that experienced an influx of undocumented workers, and they compare those changes to general wage growth happening in other firms—a comparison that Georgia’s rapid immigrant growth made possible. Taking this approach, the results are quite different: Wages of natives and documented immigrants actually rise within a firm as the share of undocumented workers goes up, leaving legal workers with more wage growth than their counterparts in other similar firms see. These results are most pronounced in the hospitality industry, retail services, and manufacturing.
Borjas shows that immigrants promote the economic convergence of regions of the United States—meaning they help struggling areas catch up to booming ones. Economic theory predicts that workers in general should migrate to places with better opportunities, lowering wages in receiving regions and raising wages in sending ones. And this does happen to an extent. But the mobility of US-born workers, especially less-educated workers, is not adequate to erase the differences in rich and poor areas.
It seems that immigrants sometimes substitute not for US natives, but for machines. This fact helps explain the small employment impacts of immigration: Immigrants essentially create their own jobs by offering an alternative to mechanized production.
There is a broad understanding among social scientists that so-called selection bias exists in who chooses to immigrate to the US. “Although there are exceptions, it is widely recognized that most immigrants, Mexicans in particular, selectively migrate to the United States based on characteristics that predispose them to low crime, such as motivation to work and ambition”.
“It is difficult to understand what the State hopes to achieve by promoting the creation and perpetuation of a subclass of illiterates within our boundaries.”