Immigration and Labor Force Participation: A Comparative Analysis of Selected Countries, Slides of Economics

Download Immigration and Labor Force Participation: A Comparative Analysis of Selected Countries and more Slides Economics in PDF only on Docsity! 1 Worker Mobility and Immigration docsity.com Immigration as a Percentage of the Labor Force, Selected Countries, 2002 2 Country Immigrants as a Percentage of Labor Force Australia 24.6 Canada 19.9 France 6.2 Germany 9.2 Italy 3.8 Japan 0.3 Sweden 4.9 United Kingdom 4.9 United States 14.6 Source : Organization for Economic Co‐operation and Development, Trends in International Migration ,  Annual Report 2004 docsity.com Age-Earnings Profiles of Immigrant and Native Men based on Cross-Sectional Data 5Source: Barry R. Chiswick, “The Effect of Americanization on the Earnings of Foreign-Born Men,” JPE, Oct. 1979 docsity.com Wage Differential Between Immigrant and Native Men at Time of Entry 6Source: George Borjas and Rachel Friedberg, “The Immigrant Earnings Turnaround of the 1990s,” Working Paper, July 2006 docsity.com Evolution of Wages for Specific Immigrant Cohorts over the Life-Cycle 7Source: George Borjas and Rachel Friedberg, “The Immigrant Earnings Turnaround of the 1990s,” Working Paper, July 2006 docsity.com 10 The Self-Selection of the Immigrant Flow Skills Dollars Positive Selection Negative SelectionDollars U.S. Source Country SkillsSP Do Not Move Move U.S. Source Country SN Do Not Move Move docsity.com 11 Impact of a Recession in the U.S Skills Dollars Positive Selection Negative SelectionDollars U.S. Source Country SkillsSP U.S. Source Country SN’ SP’ SN docsity.com 12 Impact of Immigration on the U.S. Labor Market Dollars Number of WorkersN3 N1 Demand for Labor Supply with just native workers Total Supply (including immigrants) W1 W2 N2 docsity.com Summary More recent immigrants appear to be less skilled than immigrants arriving in the middle of the last century 15 docsity.com Summary Who leaves a country depends on the returns to skill in both the home and receiving country – If the return to skill is low in the home country relative to the receiving country then more skilled workers will leave – If the return to skill is high in the home country relative to the receiving country then less skilled workers will leave 16 docsity.com Summary Overall impact of immigration on the U.S. economy appears to be positive 17 docsity.com