Immigrants represent about 14% of the American population, with this contribution especially large in some parts of the country. For instance, in California, immigrants represent 32% of the labor force, with recent data from Cal Lutheran showing that undocumented migrants alone contribute around $150 billion to the Californian economy.
These benefits don’t reduce the negative association many have when it comes to immigration, however, with these fears often revolving around the perceived threat to jobs. These fears are largely unfounded, of course, with data showing that there was usually a net positive effect on native-born workers, with migrants neither taking jobs nor driving down wages.
Positive impact
Between 1990 and 2004, immigration led to a wage increase of up to 3.4% for 90% of native-born workers with at least a high-school diploma. However, for those without a high school diploma, immigration resulted in a 1.1% decrease in their annual wages.
The analysis explains how these wage effects occur. Immigrants often have education levels and skill sets that complement, rather than compete with, the native-born workforce.
This general trend was further confirmed in a recent analysis, which showed that there was no negative impact on jobs or wages by the introduction of migrants, regardless of the skill level of native-born workers. The authors show that the skills migrants bring with them tend to complement rather than replace those of native-born workers.
“People often see past migration waves in a more positive light,” the researchers explain. “They think about Europeans who came in the late 19th century and early 20th century, and they tend to contrast this with new migrants, but what we find in the paper is actually the opposite.”