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The labor market effects of immigration in the United States
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School of Business |
Bachelor's thesis
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en
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30
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Immigration is a prominent topic in U.S. politics and media, particularly its effect on native workers. This effect has been studied in economics for decades and there is extensive literature covering the topic. This paper is a literature review focusing on the labor market response to immigration in the United States. Labor market theory says that an increase in labor supply, as from an influx of immigrants, decreases wages and employment of natives in the short run. Existing literature finds that the labor market effects of immigration on native workers are small or null. These effects have been measured in both local labor markets and the national labor market. A common finding is that immigration affects the wage and employment of native workers differently depending on the characteristics of native and immigrant workers in the labor market. Generally, studies find that relatively low-skilled native workers experience more adverse effects compared to high-skilled native workers.