Transcript AMERICA`S STAKE in IMMIGRATION

AMERICA’S STAKE
in IMMIGRATION
Why Almost Everybody Wins
Group Members
Trần Quỳnh Mai
Đỗ Linh Phương
Nguyễn Trung Đức
Trần Quang Ngân
Dương Vạn Nhất
www.themegallery.com
Contents
1
General View
2
Immigration & Globalization
3
Immigration and Complementarities
4
Other impacts & Summary
Summary
Immigrants
Compete with
original labor
 Reduce
wages
Or
Great majority of
American workers
get benefit
Immigration laws evolve Int. labor force
 Contribute to future prosperity of America.
www.themegallery.com
Immigration and Globalization
Immigration and Globalization
 2005, 2.9 percent of the World’s population are
Immigrants.
 2004, Trade: 27% of global GDP
20% total savings: outside the original Country
Immigration restrictions
Potential output
Immigration and Globalization
Culture and in
Differences
ideology:
Wages:
• Languages
1870, The U.S. Wage = 2.5 x Ireland Wage
• Attitudes
1990, Thetoward
U.S. Wage
social=welfare
7 x Mexico
programs
Wage
•Transportation
The seasonings
cost: Small fraction of Income
Immigration and Globalization
Incumbent
Workers
Business
Owners
Immigration
workers
• Productive roles
• Skills
• Return on investment
• Cheaper labor
• Complement
• Compete
Immigration and Globalization
Less Educated Workers:
• Most restricted
• Undocumented
Immigration and Complementarities
Effect of immigration
Employment
Wages
Short-term
Long-term
When immigration happens…
Native workers
Interactive tasks
New immigrants
Manual tasks
High educated and
older immigrants
Immigrant
country
 Brain gain
 Sustain high rates of
technological
innovation.
 Number of PhD.
Increases
Migrant country
 Brain drain
 Inflow of funds:
 Unilateral transfers
 FDI
Immigration and Complementarities
The interaction of wages
Average wage: determined by average labor productivity
• Foreign worker: less education and no degrees, lack of
language and cultural.
• Native worker: 89% had a high school degree and more.
– Most of manual labor will be performed by foreignborn labor.
– Native workers will be able to specialize in language
intensive and interactive tasks.
 gain more wages.
 Immigration tool advantage of new job opportunities for
native worker
• Immigration didn’t displace native worker
doesn’t imply that it didn’t affect their
wages.
 Native and foreign-born worker are not
perfect substitutes in the labor market.
EXAMPLE ON CONSTRUCTION INDUSTRY
Manual Intensive Job
Interactive Intensive Job
EXAMPLE ON CONSTRUCTION
INDUSTRY
College Degree
High School Degree
Structural Engineers
Brick Layer
Managers
Worker
Project Leader
Supervisor
EXAMPLE ON CONSTRUCTION INDUSTRY
In short term:
 Immigrants INCREASE worker supply
 DECREASE wage of manual-intensive Workers
However
 Cheap Labour INCREASE Investment (expanding/start up)
 Demand for Labor INCREASES (Supervisor, Manager,…)
 Senior Immigrants and Native workers take advantage of the new
job opportunities created by newly immigrated workers
Case key points
 People migrate due to the differences in wages
among countries.
 International immigration benefits both native
workers and the immigrants themselves.
Other impacts & Summary
Impacts of Immigration on economy
 New immigrations creates jobs in sufficient
numbers to leave employment unharmed, even
in the relatively short run
 The income levels and tax contributions of
immigrants increase over time and from
generation to generation
 They do not consider economic contributions
such as consumer purchasing power and the
formation of businesses, both of which create
jobs and provide federal, state, and local
governments with additional revenue through
sales, income, business, and property taxes
Immigrants account for very little of the increase in
poverty in the United States
Immigrants do not strain the U.S. healthcare
system
 A 2005 study found that "per capita health care
expenditures were 55 percent lower for
immigrants than for natives in 1998, even after
adjusting for sociodemographic characteristics.
On average, immigrants received about $1,139
in health care, compared with $2,546 for nativeborn residents. Although immigrants comprised
10 percent of the U.S. population in 1998, they
accounted for only 8 percent of U.S. health care
costs."
Immigrants are a net fiscal benefit to the U.S.
economy
 the average fiscal impact of immigrants…is
positive in part because they tend to arrive at
young working ages, in part because their
descendants are expected to have higher skills
and incomes, in part because they pay taxes for
some items, such as national defense and
interest on the federal debt, for which they do
not impose costs, and in part because they will
help to pay the public costs of the aging babyboom generations
Immigrants pay more in taxes than they consume
in public benefits
 The study found that immigrants become net
economic contributors after 10 to 15 years in the
United States
Immigrants are essential to the growth of the U.S.
labor force
 The 2005 Economic Report of the President
points out that "between 1996 and 2003, when
total employment grew by 11 million, 58 percent
of the net increase was among foreign-born
workers," almost all of whom had arrived since
1995. The immigrant share of employment
growth was even higher in particular
occupations, amounting in the 1996-2002 period
to 86 percent of the 1 million new positions in
"precision production, craft, and repair"
Immigrants create jobs
 Given that 40 percent of the 44.3 million Latinos
and 67 percent of the 13.1 million Asians in the
United States were foreign-born as of 2006,
immigrants account for a large share of the
hundreds of billions of dollars in Latino and
Asian purchasing power and entrepreneurship.
Immigrants do not undermine the wages of most
native-born workers
 The
White
House
Council of Economic
Advisers concluded in a
2007 report that roughly
90 percent of native-born
workers
experience
wage
gains
from
immigration, which total
between $30 billion and
$80 billion per year