the American Economy homework
Mary1997
immigration.pptx
Immigration
(From Chapter 14)
5-1
From Chapter 14
1
Figure 22.1: Legal Immigration (about 1,000,000 per year)
Number of Immigrants (2009)
LO1
22-3
55% women and 45% men
58% married
Diversity immigrants limited to 50,000 (lottery)
One-third of population growth
One-half of labor force growth
This figure illustrates legal migration based upon category of immigrants. You can see that the majority of legal immigrants are family-sponsored.
3
Number of Legal Immigrants (2009)
| Total | 1,130,818 |
| 1. Mexico | 164,920 |
| 2. China | 64,238 |
| 3. Philippines | 60,029 |
| 4. India | 57,304 |
| 5. Dominican Republic | 49,414 |
| 6. Cuba | 38,954 |
| 7. Vietnam | 29,234 |
| 8. Colombia | 27,849 |
| 9. South Korea | 25,859 |
| 10. Haiti | 24,280 |
LO1
22-4
The figures in this table show the U.S legal immigrants from the top 10 countries of origin.
4
Immigration in the U.S.
Currently some 21 million immigrants holding jobs in U.S.
Animosity toward immigrants permeates public policy
eligibility for welfare benefits
use English on forms and exams
President Bush proposed dual program of providing work visas for illegal immigrants already in the country
Conservatives split on issue: many opposed to any overtures to illegal workers in U.S. and others supportive of access to cheap Mexican labor
Liberals concerned with equity issues were horrified by initial House bill that would place severe sanctions on illegal immigrants, including requirement to display documentation before receiving health care
Disagreement between House and Senate killed chances for passage of immigration bill for near future
5
Decision to Migrate
Escape political or religious persecution
Reunite with family members
Take advantage of superior economic opportunities (our focus)
Why do some workers leave their country?
Why do others stay put?
LO2
22-6
There are many reasons why people immigrate to the United States (legally or illegally). Our interest continues to focus on economic immigration. Listed on this slide are some of the main drivers of economic immigration.
6
Decision to Migrate
Earnings opportunities
Increase value of human capital
Magnet countries
Moving costs
Explicit and implicit
Moving expense
Green card
Decision to Migrate
Distance
Greater distance, less likelihood (cost, friends and family, trips home)
Follow beaten path
Clustering
Age
Younger (benefits and costs)
In 2005, median age for U.S. immigrant who had resided for less than one year was 25.
Other factors
Language, tax laws, “for the children”
Employment Effects of Immigration
Many immigrants are highly skilled and educated
In short run, large-scale immigration increases supply of low-skilled workers and lowers wage rate for these workers
At lower wage rate, fewer U.S. workers take low-skill jobs, and immigrants fill more of these jobs
9
Employment Effects of Immigration
Fiscal impacts
Since the 1970s, the fiscal burden has exceeded taxes paid
Somewhat reversed with 1996 welfare law changes
Research findings are mixed
Reduces wages of native-born Americans not having a high school diplomas, native-born African American men, and native-born holders of doctorate degrees
Average wage impact of -3% to +2%
Employment Effects of Immigration (cont.)
In longer run, effects of immigration are less clear
Lower wages decrease business firms’ costs of production, thereby increasing profits
May encourage businesses to expand
lower prices
Larger labor force encourages expanded productivity and economic growth
Immigrants are consumers
As they purchase food, clothing, and housing, increases demand for labor to produce these goods
Immigrants, as a group, are entrepreneurial and are more likely to start up businesses than are native-born citizens
12
Immigration Facts
Illegal immigrants
Estimated from Census data
350,000 per year on average
High proportion from Mexico and Central America
Total of 12 million residing continuously in 2007, half from Mexico (40% women)
Work mainly outside of agriculture and, on average, have higher educational levels than Mexicans who legally migrate to the united States
Illegal Immigration
Employment effects
Two extreme views
Displaces domestic employment workers -for-1
Immigrant work undesirable
Increasing scarcity of domestic unskilled labor in the U.S.
Opportunities for unskilled illegal immigrants
24% of all agricultural workers
17% of all cleaning workers
14% of construction workers
12% of food preparers
Illegal Immigration
Price effects
Cheap labor keeps prices low
Construction, agriculture, landscaping, home cleaning, restaurants and lodging
Fiscal impacts can be sizeable
Taxes go to federal government, costs go to state and local governments
Schools, medical care, criminal justice system
Other concerns (criminal activity, homeland security, legal immigration, amnesty)
GALLOP June 19, 2013
Immigration Reform Proposals Garner Broad Support in U.S.
Democrats, Republicans agree on many potential immigration measures
by Frank Newport and Joy Wilke
PRINCETON, NJ -- A majority of Americans would vote for each of six different policy changes that Congress is considering as part of a comprehensive immigration reform bill. Support ranges from a high of 87% for a multifaceted pathway to citizenship that includes a long waiting period, taxes and a penalty, background checks, and learning English, to a low of 53% for a law that would vary the number of immigrants the U.S. lets into the country, depending on economic conditions.
Additionally, controversies in Congress have arisen not just over the bill's specific provisions, but also over the order in which the provisions become law, with some legislators insisting that the border security goals must be reached before other components of the bill kick in.
Regardless, immigration is not a high priority for Americans. Six percent say immigration is the nation's most important problem, putting it seventh on the list of specific problems facing the country. And when Americans were asked in a May Gallup poll about a list of 12 priorities for the president and Congress, they ranked reforming immigration last.
Legal Immigration by Major Category
Family-
Sponsored
Immigrants,
66.1%
Employment-
Based , 12.7%
Refugees,
15.7%
Diversity
Immigrants,
4.2%
Others, 1.2%
