The Economics of Immigration

Description

This book, in its second edition, introduces readers to the economics of immigration, which is a booming field within economics. The main themes and objectives of the book are for readers to understand the decision to migrate, the impacts of immigration on markets and government budgets and the consequences of immigration policies in a global context. Our goal is for readers to be able to make informed economic arguments about key issues related to immigration around the world. This book applies economic tools to the topic of immigration to answer questions like whether immigration raises or lowers the standard of living of people in a country. The book examines many other consequences of immigration as well, such as the effect on tax revenues and government expenditures, the effect on how and what firms decide to produce and the effect on income inequality, to name just a few. It also examines questions like what determines whether people choose to move and where they decide to go. It even examines how immigration affects the ethnic diversity of restaurants and financial markets. Readers will learn how to apply economic tools to the topic of immigration. Immigration is frequently in the news as more people move around the world to work, to study and to join family members. The economics of immigration has important policy implications. Immigration policy is controversial in many countries. This book explains why this is so and equips the reader to understand and contribute to policy debates on this important topic. Cover Half Title Title Page Copyright Page Table of contents Illustrations Preface Part I Background on immigration Chapter 1 Why study the economics of immigration? Types of immigrants Immigration is controversial Immigration versus international trade Immigration policy Economics of immigration terminology A basic model of immigration A global overview of immigration An overview of U.S. immigration The rest of this book What this book does not cover Problems and discussion questions Notes Internet resources Chapter 2 Patterns of international migration Where are immigrants from? Where do immigrants go? Immigrant destinations within countries Measuring immigrant concentration and dispersion Immigration to poor countries Do immigrants stay? Return and repeat migration Circular migration The role of immigration policy Refugees and asylum seekers Unauthorized immigrants Concluding thoughts Problems and discussion questions Notes Internet resources Chapter 3 Determinants of immigration Push and pull factors The migration decision Family decision-making Uncertainty The role of immigration policy The gravity model of migration Empirical evidence The role of economic conditions in the origin The role of economic conditions in the destination The role of migration costs The role of migrant networks The role of immigration policy Evidence for specific groups of immigrants Determinants of immigrant destinations within countries Determinants of return migration Immigration paradigms Conclusion Problems and discussion questions Notes Internet resources Part II Immigrant selection and assimilation Chapter 4 Selection in immigration The Roy model The direction of selection Refugees and selection Intermediate selection Summing up the model Implications for the returns to migration Empirical evidence on selection Measuring the return to skill Global patterns of selection Effects of migration costs and other factors Effects of immigration policy Selection among Mexico–U.S. immigrants Selection on health Selection in return migration The Roy model and return migration Empirical evidence on selection in return migration Final thoughts on selection Problems and discussion questions Notes Internet resources Chapter 5 Assimilation Labor market assimilation Cohort differences in assimilation Gender issues in immigrants’ labor market assimilation Accounting for return migration Immigrant types and assimilation Participation in public assistance programs Location choice and enclaves Education Language Marriage and fertility Health Naturalization Final thoughts on assimilation Problems and discussion questions Notes Internet resources Chapter 6 The second generation Measuring intergenerational mobility Intergenerational transmission and intergenerational elasticities Intergenerational mobility among immigrants in the labor market Transition matrices in Switzerland Intergenerational transmission Issues in measuring intergenerational mobility among immigrants Intergenerational mobility in education Language proficiency Marriage and fertility Ethnic identity Final thoughts on the second generation Problems and discussion questions Notes Internet resources Part III Labor market effects of immigration Chapter 7 Labor market effects of immigration: theory Immigration model Immigration model with costs Upward-sloping labor supply when immigrants and natives are perfect substitutes Labor demand Upward-sloping labor supply when immigrants and natives are complements Unskilled and skilled labor Elasticity of substitution between different types of workers Physical capital Open versus closed economy Final thoughts on theoretical labor market effects Problems and discussion questions Notes Suggestions for further reading Chapter 8 Labor market effects of immigration: evidence Brief review of theory Empirical approaches Approach #1: Spatial correlations Approach #2: Natural experiments Approach #3: Skill cells Approach #4: Structural models Concluding remarks regarding wage effects Other channels of labor market adjustment Job upgrading by natives Complementarities among highly educated workers Changes in input and output mix Productivity gains Effects on previous immigrants Concluding thoughts Problems and discussion questions Notes Internet resources Part IV Other effects of immigration Chapter 9 Effects on other markets in the destination Housing Prices of goods and services Product diversity International trade Financial markets Physical capital investment Technology, innovation and self-employment Income Income inequality Growth accounting The Solow model Final thoughts Problems and discussion questions Notes Internet resources Chapter 10 Fiscal effects Measuring the fiscal impact Fiscal costs and benefits Conceptual issues Accounting methods Estimates of the fiscal impact of immigration: United States Static estimates Dynamic estimates State-level results Estimates of the fiscal impact of immigration: OECD countries U.S. immigrants’ participation in government-funded programs Welfare Education Health care Social Security Final thoughts on fiscal effects Problems and discussion questions Notes Internet resources Chapter 11 Effects on source countries Labor market consequences of emigration for the source country Emigration and human capital: brain drain or brain gain? The extent of high-skilled emigration Models of brain drain and brain gain Channels of brain drain and brain gain Growth accounting Policy issues and responses to high-skilled emigration Remittances Reasons for remitting Remittances in the labor market model Evidence on the impact of remittances Remittances and economic growth Remittances and poverty Remittances and development Remittance policy Impacts on political, economic and social institutions Impact on political institutions Impact on economic institutions Impact on social institutions Final thoughts on source countries Problems and discussion questions Notes Internet resources Part V Frontiers in immigration research Chapter 12 Frontiers in the economics of immigration Environmental migration Voting, electoral outcomes and attitudes toward immigration Crime Human trafficking Education Health Fertility Happiness Final thoughts on frontiers Problems and discussion questions Notes Internet resources Part VI Immigration policy Chapter 13 U.S. immigration policy The evolution of U.S. immigration policy Shifting from national origins to preference categories Addressing unauthorized immigration Current immigration policy Legal permanent resident visas Temporary visas Unauthorized immigration and enforcement U.S. refugee/asylee policy State and local policies Failed attempts at federal immigration policy reform Immigration initiatives in the Trump era Final thoughts on U.S. immigration policy Problems and discussion questions Notes Internet resources Chapter 14 Immigration policy around the world Brief recap of U.S. immigration policy Point-based systems Canada Australia Other point-based systems Drawbacks of a point system European Union Guest worker programs Germany Spain Other countries Refugee and asylee policies Refugee crisis in Europe Labor market outcomes of refugees Legalization policies Policies regarding immigrants after arrival Introduction programs Language training Active labor market programs Anti-discrimination policies Final thoughts Problems and discussion questions Notes Suggestions for further reading Author index Subject index