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The Labor-Market Impact of High-Skill Immigration

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  • George J. Borjas

Abstract

The rapid growth in the number of foreign students enrolled in American universities has transformed the higher education system, particularly at the graduate level. Many of these newly minted doctorates remain in the United States after receiving their doctoral degrees, so that the foreign student influx can have a significant impact in the labor market for high-skill workers. Using data drawn from the Survey of Earned Doctorates and the Survey of Doctoral Recipients, the study shows that a foreign student influx into a particular doctoral field at a particular time had a significant and adverse effect on the earnings of doctorates in that field who graduated at roughly the same time. A 10 percent immigration-induced increase in the supply of doctorates lowers the wage of competing workers by about 3 percent.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 95 (2005)
Issue (Month): 2 (May)
Pages: 56-60

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Handle: RePEc:aea:aecrev:v:95:y:2005:i:2:p:56-60

Note: DOI: 10.1257/000282805774670040
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References

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  1. Welch, Finis, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S65-97, October.
  2. George J. Borjas, 2009. "Immigration in High-Skill Labor Markets: The Impact of Foreign Students on the Earnings of Doctorates," NBER Chapters, in: Science and Engineering Careers in the United States: An Analysis of Markets and Employment, pages 131-161 National Bureau of Economic Research, Inc.
  3. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  4. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
  5. Finis Welch, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," UCLA Economics Working Papers 146, UCLA Department of Economics.
  6. Richard B. Freeman, 1976. "A cobweb model of the supply and starting salary of new engineers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 29(2), pages 236-248, January.
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Citations

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Cited by:
  1. Kancs, D’Artis & Kielyte, Julda, 2010. "Education in the East, Emigrating to the West?," European Review, Cambridge University Press, vol. 18(02), pages 133-154, May.
  2. Delia Furtado & Miriam Marcén & Almudena Sevilla, 2013. "Does Culture Affect Divorce? Evidence From European Immigrants in the United States," Demography, Springer, vol. 50(3), pages 1013-1038, June.
  3. Catalina Amuedo-Dorantes & Sara de la Rica, 2008. "Complements or Substitutes? Immigrant and Native Task Specialization in Spain," Working Papers 2008-35, FEDEA.
  4. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2011. "Complements or substitutes? Task specialization by gender and nativity in Spain," Labour Economics, Elsevier, vol. 18(5), pages 697-707, October.
  5. Scott Baker, 2013. "Effects of Immigrant Legalization on Crime: The 1986 Immigration Reform and Control Act," Discussion Papers 12-012, Stanford Institute for Economic Policy Research.
  6. Richard B. Freeman, 2006. "People Flows in Globalization," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 145-170, Spring.
  7. Kox, Henk L.M., 2011. "The future of the fence around the European labour market," MPRA Paper 31722, University Library of Munich, Germany.
  8. Bratti, Massimiliano & Conti, Chiara, 2014. "The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions," IZA Discussion Papers 7922, Institute for the Study of Labor (IZA).
  9. Scott Farrow & Stuart Shapiro, 2009. "The Benefit-Cost Analysis of Security Focused Regulations," UMBC Economics Department Working Papers 09-101, UMBC Department of Economics.
  10. Leonid V. Azarnert, 2010. "Is Skilled Immigration Always Good for Growth in the Receiving Economy?," Working Papers 2010-05, Department of Economics, Bar-Ilan University.
  11. Thomas Kemeny, 2013. "Immigrant Diversity and Economic Development in Cities: A Critical Review," SERC Discussion Papers 0149, Spatial Economics Research Centre, LSE.
  12. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, Elsevier.
  13. Daniela Federici & Marilena Giannetti, 2010. "Temporary Migration and Foreign Direct Investment," Open Economies Review, Springer, vol. 21(2), pages 293-308, April.

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