Study about low-skilled immigration and the US economy

Thursday, April 27, 2017 | Last Updated: March 11, 2011
by admin

There is always a lot of discussion about the negative impact on the US job market by the increasing number of low-skilled immigrants. I found an interesting study, that analyses the problem in detail.

A recent study by Professor Harry J. Holzer from Georgetown University, indicates that low-skilled immigration has little impact on the wages of US citizens.

The question is raised as to why the impact of the large influx of less-educated workers on the labor market of US workers is so small.

Professor Holzer suggests three possible answers for this:

1.     Immigrants are not only producers, but consumers as well. They generate additional product demand and therefore labor demand.

2.     Immigrants are not perfect substitutes for native-born workers and mostly compete with other immigrants within the same industry.

3.     Most low-skilled jobs would likely be replaces by capital and technology if the work force was not available, instead of being filled by low-skilled native born workers.

Professor Holzer goes into further detail and analyses the costs and benefits of low-skilled immigrants for US employers, consumers and the economy at large.

He emphasizes the many positive impacts that the immigrant work force makes on the US economy.

Professor Holzer then analyses various immigration reform policies and raises the question, what his study means for them. He offers modifications to the provisions included in the mentioned bills that would raise the net benefits they provide to both native-born Americans and immigrants.

The study is very interesting and throws light on many immigration issues. I invite you to reed it here: Does Low-Skilled Immigration Hurt the US Economy
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