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Summary: The Economic Benefits Of Immigration

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Immigration and Economic Impacts
The Economic Benefits of Immigration in the United States

Madeleine Darmadi – 12415050
Ritsumeikan Asia Pacific University

United States Citizenship and Immigration Services obtain and determine nearly 6 million petitions and applications each year, which allow foreigners to stay in the United States as permanent residents or immigrants (Immigration and Citizenship Data, 2015). Even though this numerous number of immigrants is not something unusual in the United States, some people still questioning the reason of this massive immigration itself. Why do people immigrate to the United States? In order to avoid poverty, violence, and to look for a better life, people will leave their homeland and …show more content…

Apart from being a worker, immigrants also play the roles of job creators, taxpayer and consumers. As a consumer, immigrants spend or invest their money in residence and daily necessity which in turn create new jobs and increase the demand for labor. On the other hand, the skills and experience of immigrants and foreigners are required in order to form an open, innovative, and exporting economy (Vince, 2014). Immigrants, who have various kinds of backgrounds and cultures, are beneficial assets for creating original and unique ideas. By establishing new jobs and starting new business, the rising demand of labor and a steady development in the economy could be expected. More importantly, the native-born will gain more advantages than the immigrants since these new jobs are more likely going to native-born workers. A recent study by McLaren and Hong found that each new immigrant created around 1.2 new jobs that most of them went to native-born employees (2015). On a whole, immigrants will result in a bigger economy with higher rate of …show more content…

According to Ramos (2013) instead of consequential risk, the current’s legal immigrants who mainly possess higher skill than previous wave boost innovation and prosperity of the United States’ economy. Due to the multi-roles that immigrants play, new jobs are being created and the economy is stimulated. There are several disagreements about immigration since immigrants are considered to drive down the wages and harm the native workers’ employment opportunities. However, foreign-workers do not compete directly with local workers for the same type of jobs since they have a different range of jobs due to their younger age and lower education level. Thus, immigration causes good influences rather than threats towards the native-born workers. As reported by Patrice Hill (2014), economists believe that increasing immigration equals to a steady development in the economy. Immigration plays a crucial role and has positive impacts on the United States economy, especially in the twentieth century. Raising the labors’ demand, filling the growing gaps in the labor force, and increasing the native-born wages are some benefits a host country could gain from

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Immigrants fill up jobs such as building railroads, coal mining, and working in steel mills, textile mills, and factories. Immigrants have great motivation and are “30 percent more likely to start a business in the United States than non-immigrants “(Furman, Gray). These immigrants are innovators and helped to spark industrial growth in the late 1800s. Along with innovation, immigrants make up a large portion of our engineers and scientists. All of these immigrants that were business owners brought in money and at the same time, created jobs for American workers.

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This is because, a given type of worker may be scarce either because the U.S. supply of his skill type is low relative to the rest of the world, as with workers who have little schooling, or because the U.S. demand for his skill type is high relative to the rest of the world, as with computer scientists and engineers. They further note that between 1960 and 2000, the amount of working-age native-born U.S. citizens with less than twelve years of schooling fell from 50 to 12 percent (Hanson, 2007). Furthermore, it has been found that over time, although many native-born citizens believe that immigrants may take their job opportunities away from them, research says otherwise. Costa, Cooper, and Shierholz (2014) report that in the long run, immigrants do not, in fact, reduce native employment rates. However, from a short-term perspective, they may slightly reduce native employment, because the economy takes time to adjust to new influxes of immigration.

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born workers. Economists find that, on average, previous waves of immigrants tended to boost American wages. Despite concerns that competition from immigrants might harm employment prospects for native-born Americans, recent economic research suggests that, on average, immigrants raise wages and expand employment opportunities for Americans. Workers who work in agriculture, construction, and household services, appear to improve the wages for U.S. born workers by expanding the capacity of American businesses and farms, increasing the responsibility and pay of American foremen and supervisors, and providing expanded opportunities for higher-skilled Americans, particularly women, to pursue higher-paying careers. Another factor on how immigrants positively affect our economy is because some eventually start up their own business.immigrants are 30 percent more likely to start a business in the United States than non-immigrants, and 18 percent of all small business owners in the United States are immigrants.

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This opinion has a number of errors to it. In this regard, it does not take into account the rise in labor demand that occurs due to the immigration (Borjas, 23). The demand for labor is acquired from another area, meaning that it is acquired from the demand for final result. The immigrants offer labor to a wide range of markets. On the other hand, though, the immigrants acquire labor income that is directed to the purchase of products and services produced in the local economy.

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Peri (2013) pointed out that immigration’s effect on productivity has been overlooked in earlier analyses. Together with many other scholars, Peri conducted a series of studies examining the relationships between immigration and productivity in the United States. Peri suggested that immigration’s productivity effects mainly come from stimulation to investment and innovation, as well as from promoting specialization and increasing efficiency. In the medium to long run, this productivity increase drove wage growth. He also admitted the difficulty of identifying the productivity effect of immigration and that is probably the reason why it has largely been neglected.

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