The Economics of Immigration - Montana State … 2014.pdfThe Economics of Immigration. ... 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 t Decade ... World Northern AmericaPublished

Wendy A. Stock, Ph.D.Professor of Economics and

Head, Department of Ag. Economics and Economics

Montana State University

The Economics

of Immigration

http://en.wikipedia.org/wiki/Image:Statue-de-la-liberte-new-york.jpg


Immigration Overview

Costs and Benefits of Immigration

Issues On Which Politicians Have Taken Positions

•Border Security

•Illegal Immigration

•Legal Immigration

Open Discussion & Questions

Outline

How Can One Immigrate to the US?

Source: U.S. Census Bureau

OverviewCosts and

BenefitsBorder Security

Illegal

Immigration

Legal

ImmigrationDiscussion

1. Family-Based Immigration

2. Employment-Based Immigration

3. Refugees, Asylees

4. Diversity Visa Program

5. Other

Source: Greenstone and Looney (2010) “Ten Facts About Immigration,” The

Hamilton Project, Brookings Institution.

Foreign Born by Legal Status, 2009

OverviewCosts and


Illegal

Immigration

Legal


Roughly 11

million

illegal

immigrants

Why is this an issue?

0

2

4

6

8

10

12

14

16

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Perc

ent

Decade

Percent Foreign Born in the U.S.


OverviewCosts and


Illegal

Immigration

Legal


Why is this an issue?

0

2

4

6

8

10

12

14

16

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Perc

ent

Decade

Percent Foreign Born in the U.S.

37 Million

13.5 Million


OverviewCosts and


Illegal

Immigration

Legal


0

2

4

6

8

10

12

14

16

1990 1995 2000 2005 2010

Perc

en

t o

f A

rea's

Po

pu

lati

on

Year

International Migrants as % of Population

World Northern America

More developed regions Less developed regions

OverviewCosts and


Illegal

Immigration

Legal


Source: United Nations, Department of Economic and Social Affairs, Population

Division (2009). "Trends in International Migrant Stock: The 2008 Revision."

Source: Greenstone and Looney (2010) “Ten Facts About Immigration,” The Hamilton

Project, Brookings Institution. Based on IPUMS-USA and March CPS data.

1910 2008-09

OverviewCosts and


Illegal

Immigration

Legal


US Foreign Born by Place of Origin

Why is immigration an issue?

Agricultural Economics & Economics

Costs Benefits

OverviewCosts and


Illegal

Immigration

Legal




Immigration generates net economic benefit

Economics Research:

Does Immigration Generate a Net Cost or

Net Benefit for United States?

OverviewCosts and


Illegal

Immigration

Legal


Immigration generates net economic benefit

•Cost v. Benefit differs by length of time residing in U.S.

•Cost v. Benefit differs geographically

•Cost v. Benefit differs by immigrant skill & education level

What about the distribution of costs & benefits?

OverviewCosts and


Illegal

Immigration

Legal


Source: Greenstone and Looney (2010) “Ten Facts About

Immigration,” The Hamilton Project, Brookings Institution.

Cost v. Benefit differs by length of time residing in U.S.

OverviewCosts and


Illegal

Immigration

Legal


Source: Stock (2012) based on U.S. Census data

Cost v. Benefit differs geographically

OverviewCosts and


Illegal

Immigration

Legal


15

20

25

30

35

40

45

1980 1990 2000 2010

Sh

are

of

Imm

igra

nt

Po

pu

lati

on

Year

Skill-level of Immigrant Population in the US

Low-Skilled Mid-Skilled High-Skilled

Low-skilled immigrants are those without a high school diploma, high-skilled immigrants are those with at least a

college degree.

OverviewCosts and


Illegal

Immigration

Legal


Source: Hall, et al. (2011) “The Geography of Immigrant

Skills: Educational Profiles of Metropolitan Areas,”

Brookings Institution Metropolitan Policy Program paper.

Cost v. Benefit differs by immigrant skill & education level

Source: Hall, et al. (2011) “The Geography of Immigrant Skills:

Educational Profiles of Metropolitan Areas,” Brookings

Institution Metropolitan Policy Program paper.

OverviewCosts and


Illegal

Immigration

Legal




OverviewCosts and


Illegal

Immigration

Legal


What does immigration do to the wages of native workers?

Are immigrants complements or substitutes for native workers?

Effects of Immigration on the Wages of U.S-Born Workers

Source: Greenstone and Looney (2010) “Ten Facts About

Immigration,” The Hamilton Project, Brookings Institution.

OverviewCosts and


Illegal

Immigration

Legal



Issues on which Politicians have taken Positions

•Border Security




Outline

OverviewCosts and


Illegal

Immigration

Legal


Border Fence/Border Security

Secure Fence Act of 2006

•700 miles fencing on US/MX border (2006: 80 miles)

•More checkpoints, lighting, barriers

•More use of technology (drones)

OverviewCosts and


Illegal

Immigration

Legal



OverviewCosts and


Illegal

Immigration

Legal


Benefits


Costs

OverviewCosts and


Illegal

Immigration

Legal




•Border Security




Outline

OverviewCosts and


Illegal

Immigration

Legal


Immigrant-level / Supply Side Policies

OverviewCosts and


Illegal

Immigration

Legal


Employer Level / Demand Side Policies

Policies on Illegal Immigration

Immigrant-level / Supply Side Policies

• Enforcement Priorities at ICE

• Dream Act

• Legalization Process

OverviewCosts and


Illegal

Immigration

Legal


OverviewCosts and


Illegal

Immigration

Legal


0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

Dep

ort

ati

on

s (

1000s)

Year

Deportations (in thousands)

Source: Author’s reproduction of NY Times Chart;

http://www.nytimes.com/2014/04/07/us/more-deportations-follow-minor-crimes-data-

shows.html?smid=pl-share&_r=0

OverviewCosts and


Illegal

Immigration

Legal


0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

Dep

ort

ati

on

s (

1000s)

Year

Other Serious Offense No offense/Minor Infraction

OverviewCosts and


Illegal

Immigration

Legal


0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

Dep

ort

ati

on

s (

1000s)

Year


75% 66%

OverviewCosts and


Illegal

Immigration

Legal


0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

Dep

ort

ati

on

s (

1000s)

Year


75%

17%

66%

20%

Employer Level / Demand Side Policies

• E-Verify

• DHS resources

OverviewCosts and


Illegal

Immigration

Legal




•Border Security




Outline

OverviewCosts and


Illegal

Immigration

Legal


Legal Immigration

• Citizenship for military families

• Reduce barriers for high-skilled immigrants

• Raise caps for some countries; raise caps on high-skill

visas

• Grant permanent residency to foreign students who obtain

advanced degrees in STEM at a U.S. university

• Funding to improve service at USCIS

• Improve temporary worker visa program

OverviewCosts and


Illegal

Immigration

Legal


Wendy A. Stock, Ph.D.Professor of Economics and

Head, Department of Ag. Economics and Economics

Montana State University

The Economics

of Immigration



Documents

The Economics of Immigration - Montana State … 2014.pdfThe Economics of Immigration. ... 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 t Decade ... World Northern AmericaPublished