Examining the Economic Consequences of Low Skilled Immigrants in the United States
Date of Award
2008
Document Type
Thesis
Degree Name
Bachelors
Department
Social Sciences
First Advisor
Coe, Richard
Keywords
Immigration, Labor Market, Fiscal Impact, Low Skilled Immigrants, Native Earnings
Area of Concentration
Economics
Abstract
This study discusses the effect of immigration on different sectors of the economy. It focuses primarily on low skilled immigrants and analyzes the labor market impact and the fiscal impact. The recent wave of immigration has changed the national origin composition of immigrants since the primary locations that immigrants migrate from are Asia and Latin America. In addition, the educational skills of immigrants have become very polarized; a large share of immigrants does not possess a high school diploma, and a large share possesses a bachelor's degree. In this study, skills have been measured as a function of education; it has been found that low skilled immigrants playa significant role in the total low skilled labor force. The model predicts that an increase in labor supply due to immigration lowers the native wage, creating distributional changes in the labor market as total production increases and prices of output decrease; the share for employers increases while the share for native workers decreases. The econometric evidence showed mixed results regarding the effect of immigrants on the native wage. However the studies that showed an adverse effect on wages agreed that it happened among low skilled native workers or native workers without a high school diploma. The fiscal impact seemed to be negative in the short-run and positive in the long run. All scholars agreed that the fiscal consequences of altering the volume of immigration would be quite small and should not be a major consideration for policy.
Recommended Citation
Santistevan Gutierrez, Sandra Daniela, "Examining the Economic Consequences of Low Skilled Immigrants in the United States" (2008). Theses & ETDs. 4033.
https://digitalcommons.ncf.edu/theses_etds/4033
Rights
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