Quick Bytes
- New research shows immigration benefits U.S. workers with job growth and higher wages.
- Immigrants complement U.S.-born workers, enhancing productivity and economic activity.
- Study covers 2000-2019, revealing no negative impact on U.S. workers’ employment or wages.
- Increased immigration associated with wage increases, especially for less-educated U.S. workers.
Immigration Boosts U.S. Employment and Wages, Study Finds
A recent study by University of California-Davis economists Giovanni Peri and Alessandro Caiumi, published by the National Bureau of Economic Research, highlights the positive impact of immigration on the American workforce.
The research, examining data from 2000 to 2019, indicates that immigration does not displace U.S.-born workers but rather complements them, leading to job creation and wage growth. Contrary to the common belief that immigrants take jobs from native workers, the study shows that the two groups have different roles in the labor market, which boosts overall productivity.
Key findings of the study reveal that the increase in immigrant populations during the examined period did not result in job losses for U.S.-born workers. Instead, it correlated with higher employment rates and wage increases ranging from 1.7% to 2.6% for U.S.-born workers with a high school degree or less. The study also notes that without the influx of immigrants, the wage decline for this group would have been more significant.
Furthermore, the research suggests that as immigration increased, less-educated U.S.-born workers saw the most notable wage improvements. At the same time, higher-educated U.S.-born workers experienced “occupational upgrades,” moving into higher-skilled and better-paying jobs. Overall, the study concludes that immigration has not harmed the job prospects or earnings of U.S.-born workers in the past two decades and advocates for expanded legal immigration to support industries in need of labor.
With the United States facing labor shortages in sectors like construction, hospitality, and health care, the findings underscore the potential benefits of welcoming foreign-born workers to fill these gaps and drive economic growth.
