Economic immigrants Legal immigrants Migration averaged 1 million per year Quotas refugees and H1B provision Onethird of population growth Onehalf of labor force growth LO1 Number of Immigrants ID: 750142
Download Presentation The PPT/PDF document "Chapter 23 Immigration Number of Immigra..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Chapter 23
ImmigrationSlide2
Number of Immigrants
Economic immigrants
Legal immigrants
Migration averaged 1 million per year
Quotas, refugees, and H1-B provisionOne-third of population growthOne-half of labor force growth
LO1Slide3
Number of Immigrants
LO1Slide4
Number of Immigrants
Illegal immigrants
Estimated from Census data
2
50,000 per year on averageHigh proportion from Mexico and Central AmericaTotal of 11.1 million residing in the U.S. in 2012; 58% from Mexico
LO1Slide5
Decision to Migrate
Take advantage of superior economic opportunities
Escape political or religious oppression
Reunite with family members
LO2Slide6
Decision to Migrate
Earnings opportunities
Increase value of
human capital
Moving costsDistanceFollow beaten path Age
Other factors
LO2Slide7
Economic Effects
Personal gains
Economic benefits exceed costs
Other issues
Uncertainty and imperfect informationBackflowsSkill transferabilitySelf-selection
LO3Slide8
Impacts on Wages, Efficiency, Output
Understand economic outcomes
Assumptions
U.S. and Mexico
Labor demand greater in U.S.No long-term unemploymentLabor quality the sameMigration is legal and has no cost
Wage differentials key factor
LO3Slide9
Impacts on Wages, Efficiency, Output
Wage rates will equalize
In the U.S.:
Wage rate falls
Employment and output rise
In Mexico:Wage rate risesEmployment and output fall
LO3Slide10
Impacts on Wages, Efficiency, Output
Overall effects:
World output rises
Efficiency gains
Other effectsBrain drainsU.S. natives lose wage incomeU.S. businesses gain income
LO3Slide11
Complications and Modifications
Migration costs not zero
Remittances
redistribute income
Backflows: temporary migrationImmigrant workers as complementary resources vs. substitute resources
Expansion of capital in some industriesFull employment vs. unemploymentNegative self-selection
LO3Slide12
Fiscal Impacts
Fiscal burden > taxes paid
Wages will not equalize
Research findings are mixed
LO3Slide13
Illegal Immigration
Employment effects
Two extreme views
Fixed number of jobs in economy
Immigrant employment decreases domestic employment 1-for-1Immigrant work undesirableNo domestic workers displacedCompensating wage differential
LO4Slide14
LOSlide15
Startling Slowdown in
Illegal Immigration
Number of illegal immigrants in the U.S. tripled between 1990 and 2007
That number fell 8% in 2009 because of deceased job prospects during the recession
Illegal immigration population leveled off 2010 and 2011 at 11.1 millionFalling birthratesBetter local job opportunities
Government policiesStronger border enforcementSlide16
Optimal Immigration
Immigration can either benefit or harm a nation, depending on several factorsImmigration should be expanded until its MB = MC
The level of immigration is set through quotas, special provisions, border enforcement and immigration laws
LO5Slide17