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IMMIGRATION AND

COMPLEMENTARIES
• Effect of immigration
- Long-term: Wages

- Short-term: Wages
Jack – Mexican immigrant
High-school educated
Moved to the US at 22 y.o
When immigration happens…
• Native workers Interative/ Analytical tasks

New immigrants Manual tasks

Higher educated and earlier


immigrants

Why does this


happen?
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 dilemma
• Brain gain • Brain drain
- Immigrant country - Migrant country
- High influx of foreign- - The pool of well-
born scientists, educated people move
engineers to management, law
- Sustain high rate of R&D occupations.
in technology
Notice

• Immigrants do not displace native workers,


these 2 types of workers are not perfect
substitution.
• Immigration restriction policy needs to be
considered.