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The effect of immigrants on U.S. employment and productivity

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  • Giovanni Peri

Abstract

The effects of immigration on the total output and income of the U.S. economy can be studied by comparing output per worker and employment in states that have had large immigrant inflows with data from states that have few new foreign-born workers. Statistical analysis of state-level data shows that immigrants expand the economy's productive capacity by stimulating investment and promoting specialization. This produces efficiency gains and boosts income per worker. At the same time, evidence is scant that immigrants diminish the employment opportunities of U.S.-born workers.

Suggested Citation

  • Giovanni Peri, 2010. "The effect of immigrants on U.S. employment and productivity," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue aug30.
    • Handle: RePEc:fip:fedfel:y:2010:i:aug30:n:2010-26
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    References listed on IDEAS

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    1. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 3, pages 81-115 World Scientific Publishing Co. Pte. Ltd..
    2. David Card, 2009. "Immigration and Inequality," American Economic Review, American Economic Association, vol. 99(2), pages 1-21, May.
    3. George J. Borjas, 2021. "Native Internal Migration and the Labor Market Impact of Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 10, pages 275-312, World Scientific Publishing Co. Pte. Ltd..
    4. Giovanni Peri, 2016. "The Effect Of Immigration On Productivity: Evidence From U.S. States," World Scientific Book Chapters, in: The Economics of International Migration, chapter 8, pages 265-275, World Scientific Publishing Co. Pte. Ltd..
    5. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    6. David Card & Ethan G. Lewis, 2007. "The Diffusion of Mexican Immigrants during the 1990s: Explanations and Impacts," NBER Chapters, in: Mexican Immigration to the United States, pages 193-228, National Bureau of Economic Research, Inc.
    7. George J. Borjas, 2007. "Mexican Immigration to the United States," NBER Books, National Bureau of Economic Research, Inc, number borj06-1, July.
    8. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters, in: The Economics of International Migration, chapter 3, pages 81-115, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Reed Olsen & Subhasree Basu Roy & Hui-Kuan Tseng, 2019. "The Hispanic health paradox for older Americans: an empirical note," International Journal of Health Economics and Management, Springer, vol. 19(1), pages 33-51, March.
    2. Monika Maksim & Marlena Kwasik, 2021. "Employment of Ukrainians and Relationships and Work Quality from the Perspective of Polish and Ukrainian Co-Workers," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 701-713.

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