Impact of Immigration on the United States Labor Market

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According to US Census Bureau data, in 2009 12.5 percent or 38.5 million of the population were foreign-born people where foreign-born is defined as anyone who was not a United States citizen at birth. Over half of these immigrants entered the United States during the last 20 years. (Walters et al. October 2010) More recently, 7 million immigrants or 17 percent arrived in 2005 or later. (Walters et al. November 2011) Foreign-born people constituted 14.7 percent of the labor force in 2005, up from 5.3 percent in 1970. (Ottaviano et al. August 2006) This increase in immigration has rekindled the discussion about the effect of immigration on native-born workers. United States policy makers, economists and news outlets have been trying to quantify and report on the effect the increasing immigration numbers has on United States citizens. The resulting reports are conflicting; while some point to decreasing wages and increased unemployment for our native-born population, others conclude that the effect of immigration on wages and employment is minimal and possibly even beneficial. After exploring several reports , I conclude that immigration is good for the economy, the labor market and the native-born workers.

How large is the immigrant population? From where did they arrive? What is their educational background? Recent Census Bureau data shows that “nearly 14 million new immigrants (legal and illegal) settled in the country from 2000 to 2010, making it the highest decade of immigration in American history.” (Camarota October, 2011) Figure 1 depicts the immigrant population in the United States for the last 110 years with 2010 being the largest with 40 million total immigrants. Figure 1 also illustrates the percentage the Unit...

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...ed November 20, 2011. http://www.nber.org/papers/w12497. (Ottaviano et al. August 2006)

Shierholz, Heidi. Ecoomic Policy Institute, "Immigration and Wages metholological Advancements Confirm Modest Gains for Native Workers." Last modified February 4, 2010. Accessed December 3, 2011. http://www.epi.org/publications/bp255/. (Shierholz February 4, 2010)

Walters, Nathan P., and Rachel Cortes. U.S.Census Bureau, "Year of Entry of the Foreign-Born Population: 2009." Last modified October 2010. Accessed November 2, 2011. www.census.gov/prod/2010pubs/acsbr09-17.pdf. (Walters et al. October 2010)

Walters, Nathan P., and Edward N. Trevelyan. U.S.Census Bureau, "The Newly Arrived Foreign-Born Population of the United States: 2010." Last modified November 2011. Accessed December 3, 2011. www.census.gov/prod/2011pubs/acsbr10-16.pdf. (Walters et al. November 2011)

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