Why Immigration May Not Have a Big Impact on Wages (National Journal)
Senior Fellow Michael Clemens is quoted in National Journal on the impact of immigration on US prices and purchasing power.
How immigration affects the wages of American citizens is one of the most contentious concerns in the immigration reform debate. Wages are at an all-time low. But, don’t worry. The impact, if there is any, is small.
There’s an academic debate over whether immigration has boosted or dragged down wages for existing citizens. Either way, the effect is small. Plus, any increased immigration will be offset by tighter border security, advocates argue. And, taking into account other factors, immigration may even come with some economic benefits.
One of those benefits is how immigration can boost purchasing power, Michael Clemens, a senior fellow at the Center for Global Development, recently told The Washington Post.
Specifically, Clemens points to a 2008 paper. That study found that, low-skilled immigration from 1980 to 2000, lifted purchasing power for high-skilled native workers in the nation’s 30 largest cities by an average 0.32 percent. For high school dropouts, however, low-skilled immigrants reduced their purchasing power by a maximum of 1 percent.
“[T]hrough lower prices, low-skilled immigration brings positive net beneļ¬ts to the U.S. economy as a whole but generates a redistribution of wealth,” the author concluded.
