In: Economics
Briefly explain whether there are overall gains to the U.S. economy from immigration.
Today the United States is home to the world's largest number of immigrants. While immigrants assimilate faster in the U.S. relative to established European nations, immigration policy in America has become a highly divisive issue. While much of the discussion is focused on cultural problems, immigration's economic effects are clear: Empirical research shows no evidence for the argument that foreign labor inflows have decreased jobs or American wages. Economic theory projections and the majority of academic studies indicate that incomes are unaffected by long-term immigration and that the economic consequences of immigration are largely positive for the indigenous and for the overall economy
Immigrants are at the forefront of U.S. innovation and entrepreneurship, accounting for a disproportionately high proportion of patent filings, students of science and technology, and senior roles at top venture capital-funded businesses. However, immigrant presence also creates opportunities for less skilled native workers to become more experienced in their jobs, increasing their productivity.
Immigration usually also increases the fiscal position of the country, as many immigrants are paying more in lifetime taxes than they receive in government services. Native-born residents in states with high populations in undereducated immigrants, however, can face greater tax burdens, as these immigrants pay less in taxes and are more likely to send children to public schools.
The implications of increased competition from immigrants are unclear even for low-skilled native-born workers in these sectors, as many take advantage of their superior communication skills and transfer into professions where these skills are more useful, such as personal services and sales. Similarly, highly trained immigrants face a disadvantage in communication-intensive employment, and thus prefer to be interested in scientific and technological occupations. Highly skilled natives face little competition from highly skilled immigrants in management, media, and other culturally- and language-dependent occupations. Therefore the inflow of foreign labor is concentrated in a subset of occupations which already appear to employ many immigrants. It is therefore earlier immigrants who face the greatest increase in competitive strain.