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Why almost everybody


wins? – Author: Giovanni
Peri
* Nguyễn Thanh Phương - BABAIU12191
* Bùi Trúc Nguyên - BABAIU12263
* Lê Vũ Khôi Nguyên - BABAIU12226
* Đỗ Ngọc Anh Thư - BABAIU12267
* Đặng Văn Vương - BABANS10650
* Nguyễn Duy Yến Linh - BABAIU12042

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Outline

1- General View

2- Immigration and Globalization

3- Immigration and
Complementarities

4- Other Impacts
*Does immigration reduce wages for native-
born Americans?
*Does immigration help the economy grow?
*Whom does immigration hurt then?
*What the immigration impact to the U.S.
economy?
*Is immigration good or bad for the U.S.
economy? Why ?

*
**Overview
* 2005 : 2.9% World population = Immigrants
* 2004 :
* Trade = 27% Global GDP
* 20% Total savings was invested
outside the original country
Wages reduced among less-educated
workers

*Differences in Wages :
- 1870 : U.S Wage = 2.5 x Ireland Wage
- 1990 : U.S Wage = 7.0 x Mexico Wage
Transportation cost : only small fraction of
income
WHY ???

1. Culture and ideology aspect : Immigration causes changes


in
Languages spoken in schools
Attitudes toward social welfare
programs

Seasonings included in fast food


WHY ???

2. Quality of immigrants :
Less-educated workers International mobility is
restricted
Undocumented
The big losers : native less-educated workers

Make gains : capital owners and skilled workers

The big
winners : the immigrants
* IMMIGRATION AND
COMPLEMENTARITIES
*Effect of immigration
- Long-term: Wages

- Short-term: Wages
*

Native workers Interactive/


Analytical tasks

New immigrants Manual tasks

Higher educated
and earlier
immigrants Why ????
Average wage: determined by
labor’s productivity
- Foreign-born workers: lack of
language and cultural experience,
educational diplomas and
expertise.
- Native workers: 89% are highly
educated (graduate and postgrad
studies)
*Brain gain *Brain drain
- Immigrant country - Migrant country
- High influx of - The pool of well-
foreign-born educated people
scientists, engineers move to
- Sustain high rate of management,
R&D in technology law occupations.

*
*Notice

*Immigrants do not displace native


workers, these 2 types of workers
are not perfect substitution.
*Immigration restriction policy
needs to be considered.
Structure Engineers
College Mangers
degree Project Leaders
WORKERS
Brick Lawyer
High-school Worker
degree Supervisor

In Short-term:
 Immigrant: increases worker supply & decreases wage of
manual-intensive workers.
 Cheap labor increase Investment & Demand for labor
 Immigrant people due to the differences in wages among
countries.
 International immigration benefits both native workers &
immigrants themselves.
*
* IMMIGRANTS IMPACT ON THE
ECONOMY
*Keep American demographically young
*Add to US productive capacity as a nation
*Bring innovative ideas and entrepreneurial
spirit to the U.S. economy
*Fill jobs that Americans cannot or will not fill
*Raise demand for goods as well as the supply
*The income levels and tax contributions of
immigrants increase over time and from
generation to generation.
* IMMIGRANTS DO NOT STRAIN THE
US HEALTH CARE SYSTEM
*Immigrants receive about $1,139 in health
care, compare with $2,546 for native
American.
*Although immigrants comprised 10% of the
US population, they accounted for only 8% of
health care costs.
*
*

1. What the immigration impact to the


U.S. economy?
2. Is immigration good or bad for the U.S.
economy? Why ?
1. What the immigration impact to the U.S.
economy?
* Labor Force, investment, Wages and U.S.
Workers, Specific Industries
2. Is immigration good or bad for the U.S.
economy? Why ?
*increased the size and diversity of the American
labor force.
*increased investment.
* raise the wages of native born workers.
*Effects on Specific Industries.
*immigrant labor has contributed to overall
economic growth, to investment, and to
technological innovation in the United States
*The effects on individual native-born workers
are not uniform.

*
*
* http://business.time.com/2013/01/30/the-economics-of-
immigration-who-wins-who-loses-and-why/
* http://udallcenter.arizona.edu/immigration/publications/fact_she
et_no_1_economy.pdf
* http://cis.org/node/1582
* http://www.frbsf.org/economic-research/publications/economic-
letter/2010/august/effect-immigrants-us-employment-
productivity/
* http://www.cato.org/publications/commentary/immigrants-have-
enriched-american-culture-enhanced-our-influence-world