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Repost: Why immigration doesn’t reduce wages [Noah Smith, Noahpinion]

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  • Immigration does not reduce wages for native-born Americans, except in a few special circumstances.
  • Immigration increases labor supply and labor demand, which tends to cancel out the downward pressure on wages.
  • Economists have done a lot of research on the question of whether immigration lowers wages, and have found very small or no labor market impact.
  • Studies on refugee waves have found no negative effect on native-born wages, and some studies have even found that immigration increases native-born wages in the long run.
  • Other studies have looked at internal migration in the U.S. and found that inflows of internal migrants cause a boom in housing construction, which supports local labor markets.
  • George Borjas wrote a paper claiming to find negative effects for a very small slice of less-educated minority workers, but other economists found that even that drop was actually the result of a change in measurement.

Click HERE for original. Published December 27, 2022

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