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Immigrants in the U.S. labor market

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Abstract

Immigrants supply skills that are in relatively short supply in the U.S. labor market and account for almost half of labor force growth since the mid-1990s. Migrant inflows have been concentrated at the low and high ends of the skill distribution. Large-scale unauthorized immigration has fueled growth of the low-skill labor force, which has had modest adverse fiscal and labor market effects on taxpayers and U.S.-born workers. High-skilled immigration has been beneficial in most every way, fueling innovation and spurring entrepreneurship in the high tech sector. Highly skilled immigrants have had a positive fiscal impact, contributing more in tax payments than they use in public services. Immigration reform appears to be on the horizon, and policies such as a legalization initiative, a guest-worker program and more permanent visas for high-skilled workers would likely be an improvement over the status quo.

Suggested Citation

  • Pia M. Orrenius & Madeline Zavodny, 2013. "Immigrants in the U.S. labor market," Working Papers 1306, Federal Reserve Bank of Dallas.
  • Handle: RePEc:fip:feddwp:1306
    DOI: 10.24149/wp1306
    Note: Published as: Orrenius, Pia M. and Madeline Zavodny (2014), "Immigrants in the U.S. Labor Market," in Undecided Nation: Political Gridlock and the Immigration Crisis, ed. Tony Payan and Erika de la Garza (Switzerland: Springer), 189-207.
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    1. Patricia Cortés & José Tessada, 2011. "Low-Skilled Immigration and the Labor Supply of Highly Skilled Women," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 88-123, July.
    2. Gianmarco I. P. Ottaviano & Giovanni Peri, 2021. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 9, pages 245-290, World Scientific Publishing Co. Pte. Ltd..
    3. Orrenius, Pia M. & Zavodny, Madeline, 2007. "Does immigration affect wages? A look at occupation-level evidence," Labour Economics, Elsevier, vol. 14(5), pages 757-773, October.
    4. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    5. Guillermina Jasso & Douglas Massey & Mark Rosenzweig & James Smith, 2000. "The new immigrant survey pilot (NIS-P): Overview and new findings about U.S. Legal immigrants at admission," Demography, Springer;Population Association of America (PAA), vol. 37(1), pages 127-138, February.
    6. George J. Borjas, 2021. "Does Immigration Grease the Wheels of the Labor Market?," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 14, pages 431-484, World Scientific Publishing Co. Pte. Ltd..
    7. Ying Pan, 2011. "Gains from Legality: Parents Immigration Status and Children's Scholastic Achievement," Departmental Working Papers 2011-05, Department of Economics, Louisiana State University.
    8. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    9. 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.
    10. Pia M. Orrenius & Madeline Zavodny, 2010. "From brawn to brains: how immigration works for America," Annual Report, Federal Reserve Bank of Dallas, pages 5-17.
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    Cited by:

    1. Skoufias, Emmanuel & Lunde, Trine & Patrinos, Harry Anthony, 2009. "Social networks among indigenous peoples in Mexico," Policy Research Working Paper Series 4949, The World Bank.
    2. John Bound & Murat Demirci & Gaurav Khanna & Sarah Turner, 2015. "Finishing Degrees and Finding Jobs: US Higher Education and the Flow of Foreign IT Workers," Innovation Policy and the Economy, University of Chicago Press, vol. 15(1), pages 27-72.

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    More about this item

    Keywords

    Immigration; labor force; immigration policy;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law

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