How much should America worry about immigration?
Migration is a core topic of conversation in the United States (US), with President Barack Obama currently looking at ways to loosen the nation’s immigration policy. However, we are asking just how much of a concern this really is to the world’s largest economy.
Immigration has re-entered the public consciousness in recent months due to particularly strong waves of people entering the country from Central America, including tens of thousands of children.
A recent survey conducted by Reuters shows that 70% of Americans – including 86% of Republican voters – believe that illegal immigrations threaten US beliefs and customs.
The poll also showed that 63% of people felt that immigrants place a burden on the economy. A further 45% of people thought that the number of immigrants legally allowed to enter the US should be reduced, and only 17% thought any more legal immigrants should be allowed at all.
Despite this, several studies are showing that immigrants are contributing very positively to the US economy.
A paper released this month by the Partnership for a New American Economy revealed that immigrants contributed over $182 billion to the social insurance program Medicare between 1996 and 2011, while US-born citizens produced a $68.7 billion deficit for the fund over the same period.
On average, immigrants to the US were found to contribute over $11 billion more to the fund than they spent on care. The paper estimated that the trust fund would likely run out of money three years earlier than is currently predicted if immigrants were taken out of the equation.
Similarly, a paper published in May by the Fiscal Policy Institute looked at the fiscal impact of immigrants in New York, and found that investing in skill development for immigrants creates a stronger and more vibrant economy overall.
Several of our authors have found evidence to combat beliefs that migrant workers place a burden labor markets. Giovanni Peri writes that immigrant workers can boost productivity and wages for all workers, as they tend to broaden firms’ skill bases. Amelie F. Constant also discusses how migrants increase employment pools by creating jobs, thereby creating job opportunities for native workers rather than stealing them.
A focus on integration could further improve economic outcomes. Paul Spoonley’s article finds that, despite populist anxieties concerning native religion and ethics, ethnic superdiversity can improve worker productivity and innovation, and boost local demand for goods and services.
Although immigration continues to be a chief concern among US-native residents, one must question the extent to which reducing migration to the country will be beneficial.
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Related articles:
Do immigrant workers depress the wages of native workers? by Giovanni Peri
Do migrants take the jobs of native workers? by Amelie F. Constant
Superdiversity, social cohesion, and economic benefits, by Paul Spoonley