Blog of Q's

This is a summary of the most recent publication from the Institute for International Economics.
The benefits and costs of immigration into the United States are
distributed unevenly. Immigration makes the US labor force more
abundant in low-skilled labor. One consequence has been lower wages for
low-skilled US workers. Taxpayers in high-immigration US states
shoulder most of the fiscal costs, in the form of higher taxes that pay
for public services used by immigrant households. Capital owners,
landowners, and employers capture most of the benefits associated with
immigration by way of higher factor returns. On net, the economic
impact of immigration on the United States is small. However, small net
changes in national income mask potentially large changes in the
distribution of income. …

By shifting to a system that favors high-skilled immigrants, the United
States would attract individuals with high income potential. [“Potential”
is correct. The danger is that the income of current high-skilled
workers will be depressed. It all depends on the number of immigrants
admitted.] A skills-based immigration policy would help
to narrow the wage gap between high-skilled and low-skilled labor in
the United States [First, reduce the gap between the CEOs and the high-skilled workers, please.] and reduce the fiscal burden on taxpayers. …

An alternative (but not mutually exclusive) strategy would be to expand
temporary immigration programs and to phase in immigrant access to
public benefits more slowly over time. …

Despite massive increases in spending on border enforcement since the
early 1990s, the inflow of illegal immigrants has not slowed.
Enforcement should be focused on the hiring of illegal immigrants.
Mandating information sharing among immigration authorities, the Social
Security Administration, and the Internal Revenue Service (via either a
national identity card or electronic tracking of immigrants’ visa
status) would permit employers to verify instantly whether a potential
employee is a legal immigrant. Such an approach could expand the
capacity of immigration authorities to enforce against illegal
immigration at workplaces in an effective, unobtrusive, and humane
manner.