Should the U.S. Have Locked the Heaven's Door? Reassessing the Benefits of the Postwar Immigration
This paper examines the economic impact of the second great immigration wave (1945-2000) on the US economy. Contrary to recent studies, we estimate that immigration induced important net gains and small redistributive effects among natives. Our analysis relies on a computable general equilibrium model combining the major interactions between immigrants and natives (labor market impact, fiscal impact, capital deepening, endogenous education, endogenous inequality). We use a backsolving method to calibrate the model on historical data and then consider two counterfactual variants: a cutoff of all immigration flows since 1950 and a stronger selection policy. According to our simulations, the postwar US immigration is beneficial for all cohorts and all skill groups. These gains are closely related to a long-run fiscal gain and a small labor market impact of immigrants. Finally, we also demonstrate that all generations would have benefited from a stronger selection of immigrants.
|Date of creation:||Jul 2005|
|Date of revision:|
|Publication status:||published in: Journal of Population Economics, 2011, 24 (1), 317-359|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holger Bonin & Bernd Raffelhüschen & Jan Walliser, 2000.
"Can Immigration Alleviate the Demographic Burden?,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 57(1), pages 1-, September.
- David, de la Croix & Frédéric Docquier, 2003.
"Diverging patterns of education premium and school attendance in France and the US : a Walrasian view,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2003010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- DE LA CROIX, David & DOCQUIER, Frédéric, 2003. "Diverging patterns of education premium and school attendance in France and the US: a Walrasian view," CORE Discussion Papers 2003058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- de la Croix, David & Docquier, Frédéric, 2003. "Diverging Patterns of Education Premium and School Attendance in France and the US: A Walrasian View," IZA Discussion Papers 846, Institute for the Study of Labor (IZA).
- Alan J. Auerbach & Philip Oreopoulos, 2000. "The Fiscal Effects of U.S. Immigration: A Generational-Accounting Perspective," NBER Chapters, in: Tax Policy and the Economy, Volume 14, pages 123-156 National Bureau of Economic Research, Inc.
- Razin, Assaf & Sadka, Efraim, 1999. "Migration and pension with international capital mobility," Journal of Public Economics, Elsevier, vol. 74(1), pages 141-150, October.
- Timothy Miller & Ronald Lee, 2000. "Immigration, Social Security, and Broader Fiscal Impacts," American Economic Review, American Economic Association, vol. 90(2), pages 350-354, May.
- Hans Fehr & Sabine Jokisch & Laurence Kotlikoff, 2004.
"The Role of Immigration in Dealing with the Developed World's Demographic Transition,"
NBER Working Papers
10512, National Bureau of Economic Research, Inc.
- Hans Fehr & Sabine Jokisch & Laurence J. Kotlikoff, 2004. "The Role of Immigration in Dealing with the Developed World's Demographic Transition," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(3), pages 296-, September.
- Wasmer, Etienne, 2001. "Measuring human capital in the labor market: The supply of experience in 8 OECD countries," European Economic Review, Elsevier, vol. 45(4-6), pages 861-874, May.
- Borjas, George J, 1999.
"Immigration and Welfare Magnets,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(4), pages 607-37, October.
- Rachel M. Friedberg & Jennifer Hunt, 1995.
"The Impact of Immigrants on Host Country Wages, Employment and Growth,"
Journal of Economic Perspectives,
American Economic Association, vol. 9(2), pages 23-44, Spring.
- 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.
- Kjetil Storesletten, .
"Sustaining Fiscal Policy Through Immigration,"
_005, Stockholm University, Institute for International Economic Studies.
- Jagadeesh Gokhale & Benjamin R. Page & John Sturrock, 1999. "Generational Accounts for the United States: An Update," NBER Chapters, in: Generational Accounting around the World, pages 489-518 National Bureau of Economic Research, Inc.
- David Card & Thomas Lemieux, 2000.
"Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis,"
NBER Working Papers
7655, National Bureau of Economic Research, Inc.
- David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain The Rising Return To College For Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 705-746, May.
- George J. Borjas, 2003.
"The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market,"
NBER Working Papers
9755, National Bureau of Economic Research, Inc.
- 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.
- George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
- Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
- Assaf Razin & Efraim Sadka, 2004.
"Welfare Migration: Is the Net Fiscal Burden a Good Measure of Its Economic Impact on the Welfare of the Native Born Population?,"
NBER Working Papers
10682, National Bureau of Economic Research, Inc.
- Assaf Razin & Efraim Sadka, 2004. "Welfare Migration: Is the Net Fiscal Burden a Good Measure of its Economics Impact on the Welfare of the Native-Born Population?," CESifo Working Paper Series 1273, CESifo Group Munich.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1676. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.