E.g., 04/23/2024
E.g., 04/23/2024
Labor Market Impacts

Labor Market Impacts

Economic theory suggests that the impact of immigration overall on the economy is likely to be small and for any negative effects to dissipate over the longer term as the economy adjusts to a larger labor supply. The research collected here examines the labor market impacts of immigration, including how immigrant and native-born workers fare over time, as well as how their skill levels, countries of origin, gender, and other characteristics affect their outcomes in the workforce.

Recent Activity

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Fact Sheets
February 2013
By  Peter A. Creticos and Eleanor Sohnen
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Reports
May 2012
By  Randy Capps, Kristen McCabe and Michael Fix
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Reports
April 2012
By  Raymundo Campos-Vazquez and Horacio Sobarzo
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Reports
February 2012
By  Randall Hansen
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Reports
August 2011
By  Marc R. Rosenblum and Kate Brick

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In the 1990s, Mexican immigrants began to leave California, Texas, and Illinois for the so-called new settlement states where they had not previously resided. As Ivan Light of UCLA explains, their reasons for leaving or bypassing Los Angeles were both economic and political.

The addition of Romania and Bulgaria to the European Union means another round of anxieties about labor migrants. Catherine Drew and Dhananjayan Sriskandarajah of the Institute for Public Policy Research in London explain how this enlargement is different from the historic one in 2004 and why most EU Member States favor temporary restriction.

Louka T. Katseli of the OECD Development Centre explains why effective migration policies in Europe are as much a political as a technical issue.

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Video, Audio
January 13, 2011

In a report by MPI's Labor Markets Initiative, noted economist and Georgetown University Public Policy Institute Professor Harry J. Holzer examines the economic reasoning and research on these questions and looks at the policy options that shape the impact of less-skilled immigration on the economy. The discussion is on what policy reform would best serve native-born American workers, consumers, and employers, as well as the overall U.S. economy.

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Video, Audio
September 20, 2010

This important MPI report challenges the conventional wisdom about the immigrant workforce, using a sophisticated new method of analysis that permits deeper examination of how workers – immigrant and native-born – fare by economic sector, the skill level of their jobs, and educational attainment.

Testimony MR June2010
Video
June 30, 2010
Testimony of Marc Rosenblum, MPI Senior Policy Analyst, before the National Commission on Fiscal Responsibility and Reform.
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Video, Audio
June 7, 2010

The long-term impact of immigration on the average income of Americans is small but positive. In the short term, however, immigration may slightly reduce native employment and average income. This discussion explores findings of a report analyzing both short- and long-run impacts of immigration on average and over the business cycle.

MI_AssessingLaborMarketEffects
Video, Audio
April 12, 2010

Public Policy Institute of California researchers Magnus Lofstrom and Laura Hill discuss their research examining the potential labor market outcomes and other possible economic effects of a legalization program.

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Recent Activity

Reports
March 2017

Cities have played a significant role in addressing Europe’s migration crisis, including by helping migrants and refugees integrate successfully into the local labor market. This report identifies concrete actions that could be taken to better leverage European Union soft law, funding, and knowledge exchange mechanisms to support cities’ activities in this area and to deliver more effective services.

 

Articles

Faced with labor shortages in key sectors of the economy, South Korea has moved carefully in recent decades toward accepting greater numbers of workers—albeit in temporary fashion. Its Employment Permit System, launched in 2003, earned international accolades for bringing order and legality to immigration in the country, although several challenges remain to be addressed as this Country Profile explores.

Video, Audio
December 7, 2016

A presentation of the first-ever U.S. estimates on the economic costs of brain waste for highly skilled immigrants, their families, and the U.S. economy. The researchers discuss their findings in terms of the billions of dollars in forgone earnings and unrealized taxes when college-educated immigrants are relegated to low-skilled work.

Video, Expert Q&A
December 6, 2016

Nearly 2 million college-educated immigrants in the United States are stuck in low-skilled jobs or are unemployed—a phenomenon known as brain waste. In this brief video, MPI researchers discuss their key findings on immigrant skill underutilization and the resulting billions of dollars in unrealized wages and forgone federal, state, and local tax receipts.

Articles

With many countries in East Asia facing unfavorable demographic shifts in the form of aging populations, low fertility, and shrinking workforces, governments in 2016 continued to explore immigration as a potential policy solution. However, a tradition of cultural homogeneity and wariness among publics about increased immigration is leading policymakers to test the waters with very small steps.

Fact Sheets
December 2016

Across the United States, nearly 2 million immigrants with college degrees are unemployed or stuck in low-skilled jobs. This skill underutilization, known as “brain waste,” varies significantly by state. These fact sheets offer a profile of these highly skilled immigrants and estimate their forgone earnings and resulting unrealized tax receipts in eight states: California, Florida, Michigan, New York, Ohio, Oregon, Texas, and Washington.

Reports
December 2016

Nearly 2 million immigrants with college degrees in the United States—one out of every four—are employed in low-skilled jobs or unable to find work. This report explores this skill underutilization, often referred to as brain waste, and offers the first-ever economic costs of underemployment for immigrants in the United States: More than $39 billion in forgone wages and a resulting $10 billion in unrealized tax receipts.

Video, Audio
October 20, 2016

A discussion featuring data on immigration trends and the agricultural workforce, and some of the adjustments that farm employers are making, including increased mechanization, improved wages and benefits, and the increased use of the H-2A program. University of California-Davis’s Phil Martin, along with researchers from the the U.S. Department of Agriculture, U.S. Department of Labor, present their findings on the foreign agricultural workforce in the United States, which is followed by comments from the President of Farmworker Justice on some of the policy implications.

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