The net effect of immigration on the employment and wages of US-born workers is often the source of contentious debates.Less in dispute, which is unsurprising given that it’s a matter of simple arithmetic, is the effect of immigration on the growth of the US population and prime-age labour force. From a recent note by Goldman Sachs economists, emphasis ours:Immigration plays an important role in US population dynamics. Net immigration has contributed 0.3- 0.4pp to total annual US population growth over the last 25 years (Exhibit 1). As the rate of natural population increase—the birth rate minus the death rate—has declined from 0.9 percentage points (pp) in the early 1990s to about 0.4pp recently, the contribution from net immigration to total population growth has risen from 30% in the 1990s to 40-50% recently. The Census Bureau projected in 2014 that the contribution from immigration to total population growth would rise to 60% by 2030.The effect of immigration on growth of the working age population is even more pronounced as immigrants are usually young relative to the aging domestic population (left panel of Exhibit 2). As a result, net immigration currently accounts for virtually all of the 0.5pp trend increase in the working age population. According to Census projections, the level of the US working age population would actually fall by about 0.
Cardiff Garcia considers the following as important: immigration, Uncategorised
This could be interesting, too:
FT Alphaville writes Thought for the weekend
Paul Murphy writes Should we try and revive Camp Alphaville next year?
Paul Murphy writes Snap AV: One year on…
Kadhim Shubber writes Cost-cutting drive at former unicorn Ve Interactive hits fifth of UK staff
The net effect of immigration on the employment and wages of US-born workers is often the...