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The Impact of Immigrants on Host Country Wages, Employment and Growth

  • Rachel M. Friedberg
  • J. Hunt

The popular belief that immigrants have a large adverse impact on the wages and employment opportunities of the native-born population of the receiving country is not supported by the empirical evidence. A 10 percent increase in the fraction of immigrants in the population reduces native wages by 0-1 percent. Even those natives who are the closest substitutes with immigrant labor do not suffer significantly as a result of increased immigration. There is no evidence of economically significant reductions in native employment. The impact on natives' per capita income growth depends crucially on the immigrants' human capital levels.

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Paper provided by Brown University, Department of Economics in its series Working Papers with number 95-5.

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Length: 36 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:bro:econwp:95-5
Contact details of provider: Postal: Department of Economics, Brown University, Providence, RI 02912

References listed on IDEAS
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  1. George J. Borjas & Valerie A. Ramey, 1993. "Foreign Competition, Market Power and Wage Inequality: Theory and Evidence," NBER Working Papers 4556, National Bureau of Economic Research, Inc.
  2. Pope, David & Withers, Glenn, 1993. "Do Migrants Rob Jobs? Lessons of Australian History, 1861–1991," The Journal of Economic History, Cambridge University Press, vol. 53(04), pages 719-742, December.
  3. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Workforce: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1, August.
  4. George J. Borjas & Stephen G. Bronars & Stephen J. Trejo, 1992. "Self-Selection and Internal Migration in the United States," NBER Working Papers 4002, National Bureau of Economic Research, Inc.
  5. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
  6. Elise Brezis & Paul Krugman, 1996. "Immigration, investment, and real wages," Journal of Population Economics, Springer, vol. 9(1), pages 83-93, February.
  7. Jennifer Hunt, 1992. "The Impact of the 1962 Repatriates from Algeria on the French Labor Market," ILR Review, Cornell University, ILR School, vol. 45(3), pages 556-572, April.
  8. Claudia Goldin & Gary D. Libecap, 1994. "The Regulated Economy: A Historical Approach to Political Economy," NBER Books, National Bureau of Economic Research, Inc, number gold94-1, August.
  9. Markusen, James R., 1983. "Factor movements and commodity trade as complements," Journal of International Economics, Elsevier, vol. 14(3-4), pages 341-356, May.
  10. Barro, Robert T. & Sala-I-Martin, Xavier, 1992. "Regional growth and migration: A Japan-United States comparison," Journal of the Japanese and International Economies, Elsevier, vol. 6(4), pages 312-346, December.
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