The exaggerated externalities of illegal immigration

Via Kevin Drum, I see that Eduardo Porter has a myth-busting piece in the New York Times on the effects that illegal immigration has had on the wages of the least educated Americans. Here’s how it opens: California may seem the best place to study the impact of illegal immigration on the prospects of American ...

By , a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast.

Via Kevin Drum, I see that Eduardo Porter has a myth-busting piece in the New York Times on the effects that illegal immigration has had on the wages of the least educated Americans. Here's how it opens: California may seem the best place to study the impact of illegal immigration on the prospects of American workers. Hordes of immigrants rushed into the state in the last 25 years, competing for jobs with the least educated among the native population. The wages of high school dropouts in California fell 17 percent from 1980 to 2004. But before concluding that immigrants are undercutting the wages of the least fortunate Americans, perhaps one should consider Ohio. Unlike California, Ohio remains mostly free of illegal immigrants. And what happened to the wages of Ohio's high school dropouts from 1980 to 2004? They fell 31 percent. As Congress debates an overhaul of the nation's immigration laws, several economists and news media pundits have sounded the alarm, contending that illegal immigrants are causing harm to Americans in the competition for jobs. Yet a more careful examination of the economic data suggests that the argument is, at the very least, overstated. There is scant evidence that illegal immigrants have caused any significant damage to the wages of American workers. And here's how it closes: "If you're a native high school dropout in this economy, you've got a slew of problems of which immigrant competition is but one, and a lesser one at that," said Jared Bernstein of the Economic Policy Institute, a liberal research group. Mr. [Lawrence] Katz agreed that the impact was modest, and it might fall further if changes in trade flows were taken into account ? specifically, that without illegal immigrants, some products now made in the United States would likely be imported. "Illegal immigration had a little bit of a role reinforcing adverse trends for the least advantaged," he said, "but there are much stronger forces operating over the last 25 years." Read the whole thing. Illegal immigration poses significant policy problems -- but those problems have little to do with economics.

Via Kevin Drum, I see that Eduardo Porter has a myth-busting piece in the New York Times on the effects that illegal immigration has had on the wages of the least educated Americans. Here’s how it opens:

California may seem the best place to study the impact of illegal immigration on the prospects of American workers. Hordes of immigrants rushed into the state in the last 25 years, competing for jobs with the least educated among the native population. The wages of high school dropouts in California fell 17 percent from 1980 to 2004. But before concluding that immigrants are undercutting the wages of the least fortunate Americans, perhaps one should consider Ohio. Unlike California, Ohio remains mostly free of illegal immigrants. And what happened to the wages of Ohio’s high school dropouts from 1980 to 2004? They fell 31 percent. As Congress debates an overhaul of the nation’s immigration laws, several economists and news media pundits have sounded the alarm, contending that illegal immigrants are causing harm to Americans in the competition for jobs. Yet a more careful examination of the economic data suggests that the argument is, at the very least, overstated. There is scant evidence that illegal immigrants have caused any significant damage to the wages of American workers.

And here’s how it closes:

“If you’re a native high school dropout in this economy, you’ve got a slew of problems of which immigrant competition is but one, and a lesser one at that,” said Jared Bernstein of the Economic Policy Institute, a liberal research group. Mr. [Lawrence] Katz agreed that the impact was modest, and it might fall further if changes in trade flows were taken into account ? specifically, that without illegal immigrants, some products now made in the United States would likely be imported. “Illegal immigration had a little bit of a role reinforcing adverse trends for the least advantaged,” he said, “but there are much stronger forces operating over the last 25 years.”

Read the whole thing. Illegal immigration poses significant policy problems — but those problems have little to do with economics.

Daniel W. Drezner is a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and co-host of the Space the Nation podcast. Twitter: @dandrezner

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