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Promoting entry of high-quality workers through US immigration policy

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  • Lawrence Brunner
  • Joseph Pate

Abstract

We examine how US immigrants would be affected by applying a simple point system for admission, as Canada does. Since US immigration policy emphasizes family reunification, immigrants have lower education and earnings than natives, with unauthorized immigrants’ education below legal ones. Using American Community Survey data, and Center for Migration Studies data, which allows us to distinguish legal from unauthorized immigrants, we examine the effects of requiring immigrants to meet 2 of 3 conditions: (1) a high school or college degree, (2) being less than 40 years old and (3) working in a professional occupation, while admitting the same numbers of immigrants. This policy changes the source countries of immigrants and there are large positive effects on immigrant earnings. Immigrants’ use of government transfer programs is reduced to below natives and income inequality falls. Finally, with existing policy, immigrant earnings growth is not enough to overtake natives given immigrants’ entering earnings disadvantage. With this point system, immigrants start at a higher level and surpass natives relatively quickly.

Suggested Citation

  • Lawrence Brunner & Joseph Pate, 2016. "Promoting entry of high-quality workers through US immigration policy," Applied Economics, Taylor & Francis Journals, vol. 48(52), pages 5045-5059, November.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5045-5059
    DOI: 10.1080/00036846.2016.1170933
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    References listed on IDEAS

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    1. Kjetil Storesletten, 2000. "Sustaining Fiscal Policy through Immigration," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 300-323, April.
    2. Michael Baker & Dwayne Benjamin, 1995. "The Receipt of Transfer Payments by Immigrants to Canada," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 650-676.
    3. George J. Borjas, 2011. "Social Security Eligibility and the Labor Supply of Older Immigrants," ILR Review, Cornell University, ILR School, vol. 64(3), pages 485-501, April.
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