Does Immigration Drive Down Wages?
The basic anti-immigrant liberal position is that immigration is a key source for the drop in wages of people without a college education. A study last year by George J. Borjas and Lawrence F. Katz estimated that immigration resulted in an 8.2 percent drop in wages between 1980 and 2000 for high school dropouts. There have been serious criticisms of the methodology of the study generally but the New York Times today points out this basic problem with the argument about the importance of immigration as a factor in the lag in wages for the less skilled:
The wages of high school dropouts in California fell 17 percent from 1980 to 2004...[But] 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.
So maybe the more salient comparison of those states is not that California's immigration, but the fact that California has raised its state minimum wage in that period, while Ohio has not-- allowing low-wage workers wages to drop to $5.15 per hour for those covered by the federal law and even lower for those outside it.
It's worth emphasizing that there are strong economic analysis that argue that immigration has not led to any drop in wages.
In a study published last year that compared cities that have lots of less educated immigrants with cities that have very few, [UC-Berkeley economist David] Card found no wage differences that could be attributed to the presence of immigrants.Even Borjas and Katz have been retreating from their estimate of an 8% decline in wages.
And the reality is that for the heavy costs of proposed border control measures -- the billions to build a wall, more cops and border control agents, the costs imposed on businesses for more inspections and delays at the border -- the same money invested in enforcing the minimum wage, expanding the EITC tax credit, or any other of a list of measures directly helping low-wage workers would be more effective.
Cracking down on immigrants is not cost-free. Any liberal who cares about low-wage workers is not asking why conservatives can find money for border cops, but are cutting programs in the Department of Labor to help low wage workers with the Bush proposing $10.9 billion in discretionary budget authority in 2007, down from $11.3 billion in 2006, a cut of $400 million.
Why aren't the cuts in DOL the story in the headlines?
Here's the reality-- immigration is a distraction, cooked up by conservatives to take the focus off of their opposition to the minimum wage, their cuts in jobs programs and training programs, and from their ruthless tax policies that have driven inequality. There is almost zero serious evidence that immigration is a major cause of the inequality opening up in American society, yet some liberals are being suckered into a debate where it is treated as an important issue compared to far more vital issues like raising the minimum wage, trade policy and tax policy.
Update: Some folks in comments challenge the statement that Ohio has relatively little undocumented immigration. This is from the anti-immigrant FAIR site (just so folks don't think the numbers are somehow favoring immigrants) which claims only 40,000 undocumented immigrants out of a state population of 11.5 million people-- or 0.3% of the population which compares to California where 6% of the population is estimated to be undocumented by FAIR.
But the fact that commenters rushed to inflate the importance of the undocumented population in Ohio reflects the hysteria and misguided focus on the impact of immigrants even where it's a marginal force.















Well, I think this needs more examination, but I'm not the one to do it. Ohio's manufacturing/industrial base has been crushed during the same time period. California's economy did much better, I believe. To claim this difference in wages as a refutation of the claim that immigration is an important factor in depressing wages among the unskilled is simply a fallacy. At most it shows that there are other factors as well.
April 16, 2006 6:27 AM | Reply | Permalink
Yes-- Ohio's industrial base was crushed, partially by trade policies that have been far more important in undermining wages for less-skilled workers than anything immigration should have caused.
So if trade and other policies effecting Ohio played such a large role compared to immigration's possible effects, why spend tens of billions on border enforcement when we haven't been willing to spend similar amounts dealing with the effects of trade on such workers? Or to deal with the power to undermine wages given to employers by anti-union courts that have reinterpreted labor law continually to undercut labor rights?
April 16, 2006 7:03 AM | Reply | Permalink
Why do you think Americans are screaming about immigration, while the leftwing and rightwing in this country cover their ears and stamp their feet in favor of "amnesty" and "open borders?" Read the next issue of Time magazine's survey of voters attitudes.
Some inflation of wages would be a good thing, and can be paid for by a decline in profits - not higher prices. Remember this; in perfect equilibrium, corporations and businesses compete until the last unit of production produces no profit at all - ZERO. That's what Supply and Demand equilibrium means.
I think what astonishes today is that the fruits of the modern world were supposed to spread through the spread of knowledge and technology and trade in goods. Instead we find that jobs are being parcelled out by a clique of international corporate weenies who are lining their own pockets in the process. The masses of people who are wage-takers are powerless.
This is creating growing turmoil in all developed countries - witness the outsourcing and immigration debates taking place everywhere (and not just in developed countries, either.) People who felt like they were just a cog in their societies find it's worse. They're disposable, replaceable, and mere chewing gum on the bottom of corporate weenie shoes.
When 10 million new immigrants (legal or not) with low skills enter the US labor market, wages stagnate for many more than 10 million Americans. There is a "demonstration effect" that effectively keeps a lid on all low skilled jobs, not just those directly taken by immigrants.
One of the most persistent problems in American life is the persistence of poverty. So we will solve this by importing more people? We reduce poverty by importing lots and lots of poor people?
I don't believe the Minimum Wage question gets at any part of a solution. You can't raise a family and pay rent on $5.15/hour today, or $7.15/hour if you raised it tomorrow.
You can't strengthen the bargaining power of existing labor when you import 10 million cheap willing workers to take the jobs over which labor would bargain.
The strongest social safety net is a job paying $20/hour or more, earned while workers are working and raising kids. Social Security is an insurance policy for old non-workers like me.
One of the most useful tools for government policies is the "zero based" review - why are we doing A or B? Why are we encouraging immigration? Do we need more people, or better workplace technology? Are we giving up on stimulating the imaginations and skills of Americans, and turning to the foreign poor instead?
Maybe we need to deal with the American people around us, instead of abandoning them to a permanent underclass.
I could be wrong, but the "income gap" and income and wealth inequality will never be solved by throwing more people at the problem. New people displace, and consume, as well as produce.
Remember the "two Americas" theme of John Edwards in the last election? It resonated with me. We are advocating the very divisions in American society that, as (moderate) liberals, we seek to heal; and doing so with the cynical cooperation of the corporate Fat Cats.
My neighbor on one side is losing his job because his factory work moved to China, my neighbor on the other side has lost his commercial painting business to illegal immigrant workers. A guy who fixed my roof this week said he lost a $14/hour job and was replaced by a Mexican, and now he gets $10/hour fixing roofs. A young man who cut up some fallen trees last week said he lost his good job when his factory closed and he can only get $8/hour in a Quicklube shop. He has two kids.
The US labor participation rate has been declining while private sector employment has hardly risen over the past six years. The reason is that the Supply curve for labor is being constantly shifted, such that wages, especially in the lower quartiles, are flat. This discourages official participation by Americans in their own labor market.
If most economists are in favor of free markets, why not recognize that by "shape shifting" the Supply curve for labor with mass outsourcing and insourcing of labor, we have changed a free market for American workers into a controlled market for corporations and businesses?
If labor prices rise to "clear" labor markets, Americans would work, and the benefits of productivity would be more fairly spread across the citizens of this country. This would reduce the "income inequality" that is so often noted by economic analysts.
The lofty indifference of our American elites, supported by larges swaths of the intelligentsia, towards their fellow US citizens struggling at the bottom of the economic heap is astonishing. Poverty and lack of opportunity is only to be fought if it's in Mexico? Or India? Excuse me?
There is always a Great Gatsby out there who has sneaked up out of poverty into the ranks of the economic elite, but even they too often forget what it's like to live in the wage-taker's world. What's been going on is that the channels and means of economic and social upward mobility are more rigid and less available during the past few decades. Part of that is the selfishness of the elites protecting their advantages. Part is mass uncontrolled immigration.
Corporate America’s GOP have joined with nutty leftwing “liberals” of the Democratic Party. Both are hoping to profit from mass immigration at your expense. The nutty leftwing believes, vainly, that illegal’s who get amnesty will vote Democratic. That is a pipedream, since most immigrants have ultraconservative social values.
I’m a moderately liberal Democrat myself, but at the end of the day, my liberalism is reserved for Americans and neighbors. “Charity starts at home” is a perfectly ethical position for any American to take in my opinion.
April 16, 2006 7:08 AM | Reply | Permalink
I keep asking why there are "jobs Americans won't take". Should there be such jobs? I answer: "No."
April 16, 2006 7:19 AM | Reply | Permalink
I've treated some other "facts" about immigration in a parallel thread:
Immigration "facts" debunked
My focus is on the effects of NAFTA and the weakening power of labor due to the decline in unionization.
--- Policies not Politics
Daily Landscape
April 16, 2006 7:30 AM | Reply | Permalink
I certainly find your arguments and the studies you adduce to support them fragmentary at best. I am convinced that illegal immigration does have a depressive effect on wages. There are a slew of local conditions in Ohio (and California) which can skew the results; your putting them forward in this demonstrative way reminds me of the studies put forward (and paid for) by the cigarette industry to defend against government curbs on smoking. I am sure the big corporate powers are financing all these wonderful economic studies that globalization, offshoring labor, and unrestricted immigration all are both inevitable and are wonderful for everybody. There are jobs fo immigrants "which American will not take" because they do not pay a living wage; we should be fighting to increase the pay on all jobs and regulate immigration. Certainly we do not want to criminalize illegals; but even if they do not cause the lowering of real income, they do contribute to this trend, as well as to the weakening of labor's organizations of defense primarily the unions. Even if the studies showed that wages were not worse off with the presence of large number of illegals, (and it is very harde to isolate contributing factors, especially since wages seem to be lower everywhere), how can you KNOW that the wages would not be still higher without the presence of large number of illegals?
April 16, 2006 7:45 AM | Reply | Permalink
I am just curious where the factoid "Ohio remains mostly free of illegal immigrants" comes from. When I lived there, years and years ago, there was a vibrant migrant farmworker segment. I have no idea what percentage of those workers were "illegal", but I always assumed some proportion were. Have things changed so much?
April 16, 2006 8:10 AM | Reply | Permalink
Don't miss the point of the California-Ohio comparison. It isn't that immigration has no effect on wages - even Card finds small downward pressure from immigration. It is that the wage effect is very small and therefore is dwarfed by other effects.
That gives us better information about the tradeoffs we want to make. If we raise the minimum wage or EITC, for example, that will swamp the wage effects of immigration. Meanwhile, by allowing immigrants to enter we: (1) make a tremendous difference in their lives; (2) benefit from the creativity and energy of people who have self-selected to travel hundreds or thousands of miles to a new continent to better themselves; (3) contribute to the well-being of many immigrant families and countries from remittances that the immigrants send back; (4) add to America's cultural and political influence by being true to our self-image as the land of opportunity and liberty.
April 16, 2006 8:13 AM | Reply | Permalink
All jobs, almost without exception are threatened by employers finding someone willing to do the work cheaper. Obviously, the jobs that require the least on-the-job training are most threatened. It doesn't require immigrants, legal or otherwise for this to be true. That is one of the reasons unions are necessary. With a union contract, a contract that is enforced, those jobs are no longer threatened.
The downside of removing employer's ability to replace workers with cheaper ones is that eventually the employers products may have to be over priced for the market to cover the labor costs. For many years this effect was eliminated by improved productivity due to better equipment and processes, and that seems to have been forgotten now. Gaining the improved productivity requires investment in equipment and training, and fewer and fewer employers seem willing to make that investment.
Changes in tax policy are one way to encourage a rethinking by employers, so that once again our industry can afford higher labor rates without passing along higher product prices. But, the first step will have to be stronger pro-labor laws.
Hoppy in Sacramento
April 16, 2006 8:38 AM | Reply | Permalink
In fact, studies by folks like David Card come from economists who have also supported increasing the minimum wage and other pro-worker legislation.
In fact, those economists most concerned about economic inequality generally are those who are most skeptical of blaming it on immigrant labor. Which is why folks in the labor movement are so skeptical of all this agitation around immigration coming from the rightwing.
Do you really think that all of the labor unions, religious leaders and others supporting immigrant rights are somehow being duped by corporate studies? These are the same leaders who battle corporations to pass minimum wage legislation and other pro-worker legislation.
April 16, 2006 8:51 AM | Reply | Permalink
Why is the writer for the NY Times allowed to get away with making unsubstantiated claims to back up a point like that? Ohio doesn't have a significant illegal alien population or problem? That's simply not true. Anyone can google on the subject to see that not only is there a huge illegal population in Ohio, but that there have been arrests of illegal immigrant importation rings there, one of which was a temp agency that was recruiting these illegals from Mexico and border state strongholds.
Yesterday in my state, a labor union leader released videotaped evidence of illegal aliens brought in to work on government military housing by a Texas based roofing contractor. They are being paid substantially less than American workers and subjected to unsafe conditions, such as working in windy conditions without safety harnesses, they have no benefits.
Those on the left who rationalize amnesty and guestworker programs are ignorant of what they are advocating for. Whether it's George Bush's or McCain/Kennedy's plan that ends up in place, it's nothing more than a new corporate welfare, with illegal aliens being used as were the strike breakers of old.
April 16, 2006 9:00 AM | Reply | Permalink
golambek,
No use parroting the orthodox line about the benefits of immigration to immigrants. What about Americans who're ready, willing, and able to work? Sounds like the typical arguments always made by "Good Samaritans who use other people's jobs and money as alms for the poor."
You think the Mexican government or people think we're grand because we wave them in in waves? They think we're weak, lacking in survival skills, and ready to take advantage of. Stupid, in other words.
Opening up a tidal wave of uneducated immigration is what happened in the past, when most good jobs required that type labor. Yesterday is gone.
The entire immigration debate needs to look to the future - what are we doing, and why are we doing it? It's not about your Grandma who came over on a boat. It's about how your neighbors and fellow citizens can survive and thrive in the face of international labor arbitrage. If they can.
April 16, 2006 9:01 AM | Reply | Permalink
The best route to harm reduction is not limiting illegals, which is difficult and expensive in terms of personnel and time, but enforcing laws against illegal employment.
The illegal that is caught gets put in jail for a while, and deported. The employer that is caught gets a modest fine. There's your problem. Current talk looks too much at the users and not at the pushers.
It is both immoral and foolish to expect the illegal to stay on his side for our benefit.
April 16, 2006 9:15 AM | Reply | Permalink
Exactly. The reason Americans don't take these jobs is because employers who use undocumented labor feel free to dispense with their obligations to observe laws on wage and hour, workplace safety, and workers' compensation. These employers know their illegal immigrant workers will be too afraid to complain, unlike citizen workers. There are employers whose profitability relies entirely on their ability to exploit labor and flout the law.
April 16, 2006 9:32 AM | Reply | Permalink
Specific industries and sectors most definitely suffer from wage defalation because of the ability and willingness of businesses to exploit illegal immigrants.
I've been working in the restaurant industry for 23 years. I know what I've seen in kitchens across the country from Seattle to Massachusetts. I buy food that is artificially cheaper today than it has ever been because of mass production, free trade and, of course, exploited labor.
You can cite studies to your heart's content. The truth is often much simpler than disecting methodology.
Trade policy certainly has created an economic mix that has eliminated decent paying industrial jobs, but when you look at the service sector, the upwards wage pressures of higher consumer demand have been offset by something. What could that be? A glut in labor is the most obvious answer.
April 16, 2006 9:59 AM | Reply | Permalink
True, but incomplete as an answer. Absent minimum-wage and unions, all wages would be much lower.
Low consumer prices are often portrayed as unalloyed good, but they are morally neutral. Lower price is preferred, all other things being held equal. There's the rub. Other things are not equal when price is low due to exploitative labor practice.
What is not neutral is the cost of low prices.
April 16, 2006 10:34 AM | Reply | Permalink
Donald,
Thank God someone who actually knows something about economics wrote in. Please keep commenting.
April 16, 2006 12:59 PM | Reply | Permalink
The Myth that Unions will stand by the American worker is just that , a Myth. Corrupt Unions are a big reason the Unions have failed in recent times. Just how many times in the recent past have you seen union workers have to accept wage, health care, and pension cuts just to keep their job ? Way too freaking many. Look at the Pilots in the News, in the last 2 union deals, they have lost 50% of their wages while the CEOs still make 6 figure salarys. My next couple points on this issue are exp. based. Until last yr., I spent close to 10 yrs in Las Vegas. I worked for the largest flooring company in Vegas. at least half of the crews spoke very little if any english, the rest were Hispanic, save a few exceptions that would quit after a week or 2 because of the low wages paid. I know for a fact the owners knew they had illegal workers, because I have personally seen them wire money to Mexico, so a worker could get some more friends here to work. These workers were paid daily, with no taxes taken out. I also know for a fact the Authoritys knew it to, since that same company put the new floors in most the Policemens homes in Vegas for a cut-rate. I had moved to Vegas after 20+ yrs in Ca., and moved back to Ca.. Upon my return, I found the price of labor in the Carpet business had lost appox 25% of wages paid when I had left.These are the " Facts" on the ground, not from some study made by someone looking at a bunch of numbers given them by someone else that doesn't use the true facts either. I'm a proud " Tradesman", I learned the flooring business when we still used a needle and thread, and were as respected as any Plumber, Electrician, or Doctor for that matter. Theses days the pride that was once the American trademark, has been ruined by hiring the "low-bidder". Because of my wifes and my own disabilitys, we have been force to use the County Clinic, where we are treated like the minority ( which we soon will be in Ca.) Both me and my wife are part Native American, so save me any racist remarks. The lowering of wages paid is directly caused by too much cheap labor. No matter how many times someone quotes some study, it just proves to me that they don't have the kind of job that has YET been threatened and really have no clue how abandoned the American Tradesmen really are. Why is it people never remember that the Middle Class Contruction/ Manuf. Labor has been the backbone of the Democratic Party ? Why is the Left so fast to dump us aside ? I have voted Dem. since 1972, and used to vote that way out of pride. Now I still vote Dem., but only because it is has been the lesser of 2 evils. The Dems. had better start to pander to us the way they are pandering to immigrant soon, or they may lose in 08 after the this coming big win in 06.
April 16, 2006 1:33 PM | Reply | Permalink
Working in the high-tech and manufacturing sectors in So.CA I see much of the same thing.
On the high tech front, companies circumvent paying good wages by hiring H1-B employees(SEAsian high tech workers) who work much more cheaply than than their American counterparts. So American high tech workers face a double threat: off-shoring or imported low cost substitutes.
In the manufacturing sector wages are either down or stagnant. Why? companies are allowed to hire illegals and get away with paying them minimum wage or just above it. 10-15 years ago the same job would pay $10-$12 hr now its $7.00 hr. The low pay and rotten benefits keeps many Americans from taking these jobs.
The construction trades have taken the worst tumble of all. According to one recent report wages are now where they were in the 1960's when accounting for inflation. Why? A massive pool of laborers willing to work dirt cheap and with no bennies.
What gets me as a American is that we have liberals like Newman aligning themselves with the worst of corporate America and attacking the middle-class and blue collar American worker by pushing cheap labor policies.
With friends like Newman who needs the GOP to stab us in the back and turn us into corporate serfs.
April 16, 2006 1:45 PM | Reply | Permalink
I'm not thinking about the past.
That's the point of the studies. They look at whether immigration causes wage and job loss today. And the answer is that if there is any effect, it's a small one. Period. You may disagree, and it's possible they're wrong. But if they are, point me to a flaw in their argument or some respectable contrary studies.
If you are concerned about your neighbors and fellow citizens, don't waste your time trying to keep immigrants out. Fight for national health care, higher minimum wage, and a better EITC.
And I'll add, finally, that you are way off on when my family came to the states.
April 16, 2006 2:28 PM | Reply | Permalink
My point was only that the difference in what happened to wages doesn't allow an inference to the relative weight of the factors, given the seriously divergent economic histories. I'm for all the stuff you're for, Nathan, but if illegal immigration weren't holding down wages, I don't know why agribusiness, meatpackers, etc. would be so bound and determined to keep it coming. Do you?
April 16, 2006 2:54 PM | Reply | Permalink
The wage facts you cite are assumed.
Perhaps I should have mentioned that I do not think that low food prices are a good thing on the whole. Aside from the fact that they encourage labor exploitation, there are a host of economic and environmental downsides to cheap food.
April 16, 2006 4:21 PM | Reply | Permalink
Nathan wrote: Here's the reality-- immigration is a distraction [emphasis mine], cooked up by conservatives to take the focus off of their opposition to the minimum wage, their cuts in jobs programs and training programs, and from their ruthless tax policies that have driven inequality.
Bingo!
I just got done lambasting Steve Gilliard for flinching and losing his focus on the things that really matter.
Things like:
Bush&Co have plans to use nukes in Iran, generals are coming out against Rumsfeld as a proxy to oppose this administration and its policies, our Constitution is in shreds, our country is marching toward fascism, people are being tortured, maimed, and killed for the great American way and the best people can do is argue about the stuff paraded in front of them in the media.
Too many people are incapable of staying focused on the puppet-masters who keep trotting out this kind of divisive frikking bullshit EVERY SINGLE TIME they need a diversion. They say "look" and most everbody does. No wonder we have the government we have, it's citizens are out to lunch gossiping instead of being learned and vigilant.
NeoLotus
********
- Making judgements without intellectual justification is prejudice.
- We do not act rightly because we have virture, we have virtue because we act rightly.
- To know a truth well, one must have fought it out.
April 16, 2006 5:42 PM | Reply | Permalink
Good point about food--among other things, worldwide air-cargo isn't real nice to the environment.
You think the statement about wages absent unions is not valid? Didn't think there was any argument about that.
April 16, 2006 7:37 PM | Reply | Permalink
We are on different wavelengths. Of course I agree that without minimum wage laws and unions that the current bottom edge of legally paid wages would be lower. (This statement is not as true as it was 30, 40, 50... years ago, though.)
April 16, 2006 7:42 PM | Reply | Permalink
Let's find a common channel. I was thinking less of overall effect than in a specific job.
April 16, 2006 7:55 PM | Reply | Permalink
With you.
The tricky part is changing things. The fastest, and most moral, way is to punish employers.
Dems should also be pushing for labor protection in the form of conditions and wages since if they are good jobs, Americans like my son will take them. (I have a good job).
April 16, 2006 7:59 PM | Reply | Permalink
As a liberal African American Democrat, i find it most disheartening that our country is willing to attempt to progress economically on the backs of people who can be coerced into working at "slave wages". If Americans "won't" work at certain jobs, it may be because it is more profitable to sit home and collect a welfare check along with food and some medical care, then to work at a sub-minimum wage job, where you could be easily fired without redress and have no medical benefits. No one in my family has been on welfare, but I can understand (not condone) the economic decision made by some White, Black and native born Latinos to make this choice. This is one of the benefits of US citizenship.
If we are a country, then there have to be rules for citizenship. Being born here imparts the benefits of citizenship. Non-native born people are citizens if a parent is a US citizen. Otherwise, get in line. Should immigration rules be modified to speed it up? Probably yes. should geographic proximity trump other issues in deciding how fast citizenship occurs? Probably not. Mexico does not freely allow people from other South American countries access to their borders, even if they merely want to pass through to get to the US.
Mexico should be pressured to improve their own economy, rather than passing their problem on to us.
I might ask Nathan why he is showing latent hostility to Haitian refugees. If he is supporting immigrant rights, than he should be trumpeting having Haitians come to work in the US. I even bet we could get them to work in the fields, in food services, in lawn care or as caregivers for children at a lower wage than South Americans would. Why is Nathan so compassionate to South Americans, but so silent on Caribbean peoples. (sorry for the cynicism)
The truth of the matter is that we need border security (borders define a country), we need a balanced immigration policy that treats South Americans, Europeans, Africans, Asians, etc equally, and provides for documentation of all immigrants. We need penalties for people who hire people not in the US legally.
The economic rationalizations are open to question, because methodology will always be open to question. If illegal immigrants aren't making April 15th payments, how can the ecomic impact be fully calculated since they may not be on an employers books. If health care is being provided to immigrants without health care how much of a drag on debt is that?
Finally, a person should be paid a living wage for a back-breaking job. There should not be a sense of pride in supporting employment of people at a subpar wage.
We should remember most Blacks were not "unemployed" during slavery. that did not make it a great economic plan worthy of repetition by other countries.
Pressure Mexico to work on it's economy
Protect our borders.
Raise the minimum wage.
Find a noncitizen willing to work for a lower salary and longer hours than Nathan Newman so we can get a cheaper and more authentic voice for his position.
April 16, 2006 8:19 PM | Reply | Permalink
I'm not sure why you think I'm not compassionate to refugees of any country. Haitian refugees probably deserve even more consideration than most other Latin American refugees because of US responsibility for undermining stable governments there-- something I've written about quite often over the years, as recently as in January. Part of the reason US has little standing to block immigration to the US from a range of countries is that we are so responsible for undermining decent governments or stable economies in so much of the hemisphere -- and in many other places around the globe.
However, since Josh doesn't pay me for my posts here, you unfortunately can't find someone willing to work for less on my job here :)
April 16, 2006 8:46 PM | Reply | Permalink
The "H1-B" immigrants taking highly skilled engineering and other technical jobs are not illegal immigrants. The problem there, just as in any other work field, is the lack of an effective union contract for that work class. For most of my career in engineering, companies did not try to undercut their engineer salaries and benefits. The importation of people from other countries to do that is relatively new. But, we always understood it could happen and many of us wanted union representation to prevent that and other abuses. Most of us never did get unionized.
My point is that undocumented Mexican workers are being scapegoated for a problem that is not caused by them, but by the weakening of the unions begun under Reagan and continued since then. Today we have the smallest percentage of our workers in unions than at any time since I can remember. That is a problem we can solve, and once we do that, abuses such as those we have been discussing will mostly be a thing of the past.
Democrats should resist the temptation to pick out a defenseless group of workers and blame them for what is really not only not their fault, but which is a problem for them too.
Hoppy in Sacramento
April 16, 2006 9:08 PM | Reply | Permalink
Thanks for your reply. Locally here in Minnesota, I have seen Roach fromtheCatholic Church prominently supporting the immigrants. (I am glad he is doing that). In all honesty any support he or the local Catholic leadership has been giving to raising the minimum wage has been invisible or at least stealthy. Are you quite certain the religious leaders supporting immigrants have been calling for raising minimum wages? I certainly have the impression that certain liberal pundits like Krystof love the immigrants but never write about falling real wages.
April 16, 2006 9:11 PM | Reply | Permalink
I was being intentionally provacative
I really don't think that you have no compassion for other immigrants.
I also agree that the US has been ham-handed and arbitrary in it's handling of foreign affairs. Part of our current situation is the unintended results of past actions. 1)Shah of Iran --> suppressing citizens --> deposed --> rise of the clerics + nuclear weapon seeking head of state 2)Osama --> supported and trained
--> now terrorist #1 ,etc
BUT the US can't take in everybody. We hav
Hurricane Katrina demonstrated that there are many people here in the US barely surviving. In our government's wisdom instead of using a part of the displaced people to help clean up NOLA, immigrants are used for much of the cleaning. The economics are that immigrants will work for a lower salary than US citizens would expect as a livable wage. While there may not be a study that low wage NOLA citizens were economically impacted. They probably feel differently.
Two disadvantaged groups are being used against each other. It is happening in front of our eyes. The NOLA residents and millions of others like them are invisible. Instead of being bold and saying that Americans will do any job that pays a living wage we remain silent. To say that there are jobs won't do is to take a GOP line that justifies "slave wages".
I apologize for the overall tone of my response above, in which I used your name, but it seems that poor Americans are being treated as an aferthought. I think they are the first ones to be considered in this debate. Count me as a liberal who is concerned about the impact of immigrants on wages.
I don't have easy solutions, but I am angered by conservatives basically say some Americans are lazy because thay want a living wage and progressives who seem to be arguing for an open arm policy and ignoring concerns of those who feel the plight low wage earners who will take the brunt of the decisions that we liberals and those conservatives make. Make sure they are given a primary role in any bill
April 16, 2006 9:55 PM | Reply | Permalink
"Immigration has been one of the tools that have been used to depress wages for less-skilled workers over the last quarter century. Many of the “low-wage” jobs that cannot be filled today, such as jobs in construction and meat-packing, were not “low-wage” jobs thirty years ago. Thirty years ago, these were often high-paying union jobs that plenty of native born workers would have been happy to fill. These jobs have become hard to fill because the wages in these jobs have drifted down towards a minimum wage that is 30 percent lower than its 1970s level."
That is a quote from economist Dean Baker, from his new blog,Beat the Press.
I think it's important to show solidarity with immigrants. And I object to the right wing inflamming this discussion with racism. But, even while we sympaphize with immigrants I think we need to remain clear headed about the various roles immigration plays on keeping wages down. It may be a large or a small factor in comparison with economic globalization and other factors. But common sense, basic economics and my own experience in my own community tells me that, for all their positive contributions to our society, immigrant workers also play into our low wage-stagnant wage economy.
Jeff Faux, over at epinet.org has some suggestions for a North American New Deal- a possible way to work together with Mexico and create prosperity for all.
April 16, 2006 10:10 PM | Reply | Permalink
If you think adding 11 million ( or 9 million, or 5 million, depending on the demographics) illegal workers does not drive down wages, you are crazy. Site some study about Ohio as much as you want, but one could use generalized statistics to prove any point. The number you bring up mean very little.
If you want to see the effect of illegal immigrants on wages, go talk to some unionized meatpacking workers. The ones who no longer have their jobs because they were fired and replaced with illegal workers bused in from Mexico. Talk to contractors who must pay cheaper wages to survive when competing against illegal workers.
On top of that, basic supply and demand dictates that more workers will absolutely drive down wages or keep them stagnant. A net of only a few thousand jobs were created in Bush's first term, a time during which a few million more illegal immigrants came here and found jobs. To say this had no part to play in the stagnation of working class wages is somewhat ignorant.
April 16, 2006 11:22 PM | Reply | Permalink
I don't know in Minnesota, but in many communities like Los Angeles, the Catholic Church has often been one of the most prominent groups supporting higher minimum wages and supporting union demands for better wages above that level in union organizing drives.
April 17, 2006 3:59 AM | Reply | Permalink
"Here's the reality-- immigration is a distraction, cooked up by conservatives to take the focus off of their opposition to the minimum wage, their cuts in jobs programs and training programs, and from their ruthless tax policies that have driven inequality. There is almost zero serious evidence that immigration is a major cause of the inequality opening up in American society, yet some liberals are being suckered into a debate where it is treated as an important issue compared to far more vital issues like raising the minimum wage, trade policy and tax policy..."
Baby steps....
The immigration issue IS an important one because it gives the rest of America a leg to stand on:
1. The protests are getting MAJOR news coverage and having some effect on the debate compared to other various causes using similar tactics and being dismissed. It shows America that people still do have power. You don't even have to be FROM HERE to use it.
2. Rather than seen as a "distraction" it should be a "door opening"; an opportunity to open debate on subjects like health care and minimum-wage.
Any successes acheived by the detractors of the bill can be used as momentum to force the issues of poor Americans onto the public agenda. If they can do it, why can't we?
"Twirling round with this familiar parabol, spinning, weaving round each new experience. Recognize this as a holy gift and celebrate this chance to be alive and breathing..." - Tool, "Parabola", 2001. http://peopledontcareaboutpolitics.blogspot.com
April 17, 2006 5:51 AM | Reply | Permalink
Hi Tom, The point you make about minimum wages is not correct, in part. It sets a minimum floor wage for legal workers, that's all.
The true point is this: a law can't be very effective in replacing labor markets where the supply and demand for labor both uses wages to set market rates. If jobs are increasing, and labor is fixed, then jobs will pay more to attract workers. If workers can be replaced with a horde of immigrants, each eager to work at any price, then jobs will pay less. That's what's happening.
%5.15 is the minimum wage. You could raise it to $10 an hour and it would be barely enough to keep the lights on for the average family. So fighting for a slightly higher minimum wage is doing nothing to increase wages in the broadest sense, or doing much more than keeping some workers from starving.
Henry Ford paid his workers $5 an hour when he opened his Model-T plant over half a century ago. Are you proud of today's minimum wage? Ford said, in a revolutionary statement for a rich guy, that he wanted his workers to be able to afford the products they were making. Thus began the keystone industry of this country, till the advent of computers.
If you stabilize the supply of labor, normal market forces will cause wages to rise across the board. Profits for corporations, which are at 75 year highs, will fall to accomodate the need to pay workers. But a boom of broadspread prosperity would follow that would meet or exceed the good times during Clinton's era. Everybody would get what they were worth.
I see unions as a good thing, a counter force when bargaining with greedy executives. With an unlimited supply of cheap labor pouring over the borders, what leverage do unions have? None. That any union would support mass uncontrolled immigration is pathetic, but it's happening today.
Likewise, I find it hypocritical of the Catholic Church to support illegal immigration and higher wages at the same time. Why doesn't the Catholic Church preach birth control and set up clinics in Mexico? Because they're importing parishoners into their shrinking memberships in America. "Let somebody else pay," is the hidden message.
And our wages are suffering. Uncontrolled immigration and outsourcing of jobs are two sides of the same coin. Wages are lower for electrical engineers and computer programmers than they were a few years ago. Purchasing power for workers comes from borrowing against equity in their homes, rather than from their workplace. This is called "impoverishment" last time I checked. Economists call it "dis-savings." That's the opposite of the creation of wealth.
April 17, 2006 7:55 AM | Reply | Permalink
Corvid
To emphasize SqueakyRat's point above, did anyone see that Associated Press piece over the weekend about the huge and growing phenomenon of U.S. employers actively recruiting illegals in Mexico and then paying smugglers quite handsomely (one made $900,000 in 15 months) to get them up here? The practice began in the 1970s with the notorious consolidation and union-busting efforts of the meatpacking industry (By the way, I'd be interested to know what Nathan Newman, as a labor activist and organizer, has to say about that.). This industrial smuggling is rarely punished and has grown into something of an industry by itself. The fact is, there is a broad array of factors dragging down American wages, and one big one is illegal immigration. The proof is right there in what industry is doing, both over the border and on Capitol Hill, to preserve its access to illegals. One other question, though: Is it really the case that Ohio has few illegals? If so, it must be the only state in the contiguous 48 where that's so.
April 17, 2006 8:03 AM | Reply | Permalink
My response is simple -- apply real financial and criminal sanctions against union-busting as the solution, instead of targetting the low-wage immigrants themselves.
This is the point-- low-wage immigrants filling low-wage jobs is the result of corporate acts of union-busting. If you want to understand what drove union-busting in the meat-packing industry, I recommend the Academy-Award winning documentary, American Dream, which highlighted the destruction of the union in Minnesota. No immigrants were involved, just hard-ass anti-union corporate tactics (and some bad tactics by union leaders themselves). The emergence of immigrant workers in the industry largely followed the breaking of the union and the lowering of wages.
April 17, 2006 8:10 AM | Reply | Permalink
I feel that using enforcement against employers is more efficient than stemming the tide leaking through the border, and I also feel there's plenty of room in the cost structure to increase the wage floor in currently unprotected jobs.
Outsourcing can also be limited in some ways, but I dont't have a sense of what the consequences would be.
As to the current population of illegals, it seems to me the easiest, and most thorough, way to reduce it is by limiting the open jobs through, once again, enforcement against employers.
April 17, 2006 8:23 AM | Reply | Permalink
No offense, but fighting for health care and EITC are like saying: "Let's fight for higher costs for taxpayers so that industry doesn't have to pay a living wage to workers."
The "liberal" prescriptions for poverty and lowskilled workers suck. Only a fair fight over wages will make wages rise, not a fight over costs that workers would normally be able to afford, if they had decent salaries.
The EITC is well-intended, but a subterfuge planted by Corporate America into the tax code. It allows corporations to pay sub-standard wages, which are then subsidized by the innocent public.
Miminum wages, I comment below.
(Everybody's Grandma came off a boat sometime, mine included, it was a rhetorical device to mention Grandma's at all.)
April 17, 2006 8:24 AM | Reply | Permalink
Corvid
Construction and meatpacking are excellent examples. The presence of illegals doesn't hit workers in every industry, but the ones who are affected lose their chance at a decent life--and that's huge and insupportable. In response to those who maintain that we should legalize the millions already here or have some kind of guestworker program and THEN mitigate the effects by raising the minimum wage or making it easier to organize unions, I'd suggest that legalization is likely to make such legislative remedies that much more difficult. Trying to address the laws of supply and demand with legislation is like trying to stop a mudslide with a beach umbrella.
April 17, 2006 8:29 AM | Reply | Permalink
And yet unions in those industries, meatpacking (UFCW) and construction (Building trade and Laborers especially), are strongly supportive of legalization precisely because the only way they can build a united front against employers is if all workers have free speech rights in the workplace. The problem is that US law de facto makes it legal for an employer to fire an undocumented worker if they join a union -- making them incredibly attractive as employees.
April 17, 2006 8:45 AM | Reply | Permalink
This is an excellent analogy, in terms of wages and immigration. Ford basically created a market for his own product. The computer industry did the same but they did not bother with raising wages. Consider this, if the automobile had followed the same development cycle as the computer. A Rolls Royce would today cost $100.00, get a million miles per gallon and explode once a year, killing everyone inside..
The tech industry relies on cheap foreign labor and parts, look at how Dell computers has moved 45K jobs to Asia. The American worker cannot compete in what is essentially a global labor force., unless they relocate to another country where the labor wage does suppor a high standard of living in that country. The problem there is that India has a glut of educated engineers and no need to hire American workers.
Only America is allowing immigrants to come in and supplant the labor force of their own citizens.
What I find most interesting is how corporate America has turned this into an immigration issue when they themselves are the culprits in terms of labor wages. This is the same sort of divide and conquer method used with raced based 'southern stratergy' politics..where the red neck votes against welfare due to his perception that the program has blac ks.
April 17, 2006 1:18 PM | Reply | Permalink
How to determine the wage effects of immigration? My guess is, it is impossible to do. I'm not surprized that Borjas and Katz's 8.2% is faulty. But the real effect may be much larger rather than much smaller.
The most remarkable statistic in the NYT article Newman links is this (IMHO): THe median wage for high-school dropouts is almost constant from state to state! Meanwhile the percentage of illimigrants varies a factor of ten.
It's hard to find any other employment categories that are so constant from state to state. Unemployment usually varies a factor of two or more. Take a look at some statistics www.oesc.state.ok.us/lmi/publications/StateRankings/OKStateRankings2002.pdf
Average income varies a factor of two from $24K to $45K. Median family income varies a factor of two from $44K to $83K. Median wage for carpenters varies over a factor of two from $10 to $24 per hour. Any statistic you can think of has great variations among states.
So what is keeping the median wage for high-school dropouts so constant? Some factor that works on a national scale.
I think the answer is US citizenship. It doesn't pay for a citizen to take a job that pays much less than that, and forgo whatever opportunities to get by without a job.
April 17, 2006 3:50 PM | Reply | Permalink
Corvid
I think the unions are wrong. What they're likely to get in the end is legalization without the right to organize, which is, incidentally, also the case with American workers.
Secondly--and this points to one of the core reasons I oppose amnesty or a guestworker program--it's unjust. Why should a disemployed and now underemployed American who lost his good union job due to the scab effect of millions of illegals cheer if those illegals were to get the same pay and benefits he once had--as unlikely as that prospect is? It would be a second knife in the back.
American labor was assured that the 1986 "regularization" would end this problem, but the promised enforcement mechanisms never materialized (predictably), many millions more illegals showed up (predictably) and now we're facing yet another amnesty program that Congress will top off with yet another parcel of enforcement lies and that will (predictably) only make matters worse for workers while providing another windfall for industry.
Maybe I'm wrong and the unions are right, but I don't see how an increased supply of cheap labor will facilitate organizing. Their legal status is just a comically secondary consideration in light of the sheer weight of their numbers. Again, note that for a couple of generations now American citizens have been effectively barred from organizing.
The enforcement of worker rights--even the Bill of Rights--isn't there. (Related to this, U.S. employers have the power--endorsed in the courts--to suppress free speech of almost any kind by their employees, on or off the job. Check it out. And then we have the nerve to poke fun at the French for demonstrating in their millions to preserve their rights as workers. Pathetic. But I digress.) Besides that, regardless of what they may say, unionization just isn't a good fit with either party's Friedmanesque globalization zeitgeist.
April 18, 2006 7:46 AM | Reply | Permalink
Let's suppose the arguments of fairness are valid and that, therefore, illegal immigrants don't deserve a path to citizenship. We then have two choices: we can take an uncompromising moralistic attitude or we can try to minimize the degree of unfairness involved.
Suppose we take the uncompromising position, what are the options? Can we realistically deport or imprison 12 million people? What would happen to their families, especially the children who are citizens? I think those who support the moralistic position are obligated to explain how their stance would work in practice, otherwise it is just empty rhetoric.
Now suppose we take the other approach. We seem to have a mix of options. We could deport or imprison a certain percentage that fit some criteria, say length of stay or criminal activity or something else. These groups would still have to be fairly small if rounding them up was to be practical.
For those who are established there are a variety of options as well. We could create a new class of residents with limited rights. Something less than green card holders, for example. These people would then be part of the system, their locations would be known to local governments, taxes would be collected, the degree to which they could be exploited would be diminished and reliable statistics about their economic and social impact could be compiled. The US already has the H1B visa program as an example of this type of status. Many foreign countries also have a limited resident status as well.
I believe that the uncompromising position is unworkable and even those who feel it is morally unjust to grant rights to illegals should realize this is the only realistic path. Sometimes one has to compromise one's ideals in the real world.
--- Policies not Politics
Daily Landscape
April 18, 2006 10:55 AM | Reply | Permalink
YES. YES. YES.
With all due respect, if this article doesn't take into account the depressed Ohio manufacturing and economic situation, it is completely uninformed on this aspect of things there. And that is amazing, seeing as Ohio's condition was such a public factor in the 2004 election.
Leaving this out is like comparing apples and oranges and being oblivious to the difference. It is akin to comparing wages in 1935 and 1960, without being aware of the Great Depression, even if the degree is less.
Take No Prisoners :
http://travelerdiogenes.blogspot.com/
April 18, 2006 2:21 PM | Reply | Permalink
A new class of residents with limited rights? I thought we fought a Civil War about that. I thought we fought for the right for women to vote. I thought we fought for labor rights. I thought we fought to end segregation. A new class with limited rights? Get that idea going again and there's no end to where it will lead -- backward.
How are we letting ourselves be conned into this game. Limit freedom for some people and you destroy the pillars that expanded freedom for all the rest of us. And for what?
April 18, 2006 3:48 PM | Reply | Permalink
Corvid
Thank you for your response, and specifically for acknowledging the injustice issue. Very few in this discussion seem willing to do that.
However, I don't think anyone is talking about rounding up 12 million illegals, which is something of a strawman--although I'm not quite sure why it's so much more unrealistic than the notion of somehow processing all those millions through a bureaucracy that isn't adequate to handle one-tenth their number.
What we need to do instead is address the demand side, the employers, and dry up the jobs. To do that, we need citizen ID cards that can't be forged, as well as severe penalties--including mandatory jail time--for employers who fail to check them. The advantage we have in this is that illegals really do want to work.
As for compromise, we've already done that, to the tune of the presence over 20 years of millions of illegals who should never have been here in the first place. The American who made over $20 an hour with benefits in the 1970s who has since been reduced to $8 an hour with no health care for the better part of his working lifetime has compromised enough.
Think of it this way: Tolerating illegal immigration is like an especially pernicious form of a deliberately regressive eminent domain, imposed on Americans (however few or numerous they may be is beside the point) who are least able to bear the cost but at the same time get no compensation for what has been taken from them. The way I see it, whatever these direct victims want at this point trumps all other considerations--although I'd certainly be willing to listen to anyone who thinks otherwise.
The only question is how we go about fixing things. To re-emphasize, the key is the employers and the demand for cheap, illegal labor. We'd have to start there and hit them very hard.
By the way--and please excuse me if I'm too repetitive as I've mentioned this before--but please read the AP piece over the weekend about US employers actively recruiting illegals in Mexico and Central America and then paying smugglers enormous sums to get them into the States. This really sharpens the picture of the rot at the heart of this debate. It's not primarily about the illegals but about the union-busting and lawbreaking of American business aided, abetted and cheered by both parties.
April 19, 2006 8:01 AM | Reply | Permalink
We already have residents with limited rights. For example, permanent residents can not inherit their spouses estates without paying tax under marital exemption provision. Only citizens can get the marital exemption.
The new Medicare provision requiring proof of citizenship or a passport is another example of limiting permanent resident's rights. For that matter so is restricting voting to citizens.
Permanent residents who pay taxes and are part of the social structure of society are already treated differently. My suggestion was nothing new, just a way to formalize things.
--- Policies not Politics
Daily Landscape
April 19, 2006 11:28 AM | Reply | Permalink
If we really clamped down on the use of illegal immigrants in jobs what do you see happening next? The number of people working keeps expanding, so that means there is a continual growing demand for workers. It is possible that some fraction of those out of the work force could be enticed back into it by better wages or working conditions. But what happens if there is still an unmet need for workers?
Most likely even more jobs done here would leave for elsewhere. I just read a study about strawberry picking in CA. It seems that this is one of the areas done by immigrant labor. What the study found was that if the wages were raised the production would decline in the US while production would expand in Mexico. The net effect would be a loss of jobs and income in the US.
My point is that all the slogans being thrown around by both sides are too simplistic. A realistic solution is not going to be found if people overlook some of the real issues.
If you didn't see it before here is my attempt to add some actual data to the debate:
Immigration "Facts" Debunked
--- Policies not Politics
Daily Landscape
April 19, 2006 11:40 AM | Reply | Permalink
Thanks for the data.
In looking at the data, I did find the data used to debunk the assertion that immigrants take jobs from americans to be invalid. The source uses unemployment data as a reference point for something that data does not measure.
Unemployment data only counts the number of people who receive unemployment, it does not count the number of unemployed people. So to say that it has remained constant only means a certain number of people file for unemployment, during those periods.
It does not reflect the actual number of people unemployed, which could very well be rising due to the lack of jobs. You can only file for unemployment if the employer pays into the system and you can only collect for a certain period. Once you no longer collect you are not counted as unemployed.
Which would account for unemployment rates not going up during most periods of time covered using unemployment data. It is exceptionally poor data and could not ever be used to answer the question factually it is purporting to.
One other thing to note is that overall unemployment data rates seldom match the subset rates for lower working class workers, since their rate is usually far higher than the overall rates. Given that low wage working class workers tend to be black and HS dropouts and their unemployment rates for any period you list the rates for will be substantially higher. These are also the workers most likely to perform unionized labor as well.
You would need to correlate the rate for that subset of workers with the overall rates you are using in order to give an accurate portrayal of the unemployment rate for the specific working class most likely to be affected by immigrant pools of labor. Even still, it would not reflect the permanent unemployed that had been dropped from the rolls, only the numbers collecting umemployment would be shown.
For instance, in LA, where did all the black workers who were doing drywall at American wages go when immigrants took those jobs, and where are the meatpackers who once held union jobs in MN now working? It is these subsets of workers that you would need to document as being employed. What I beleive you would find is that these people are now working two minimum wage jobs to still not come close to the union wages they use to earn tht supported their families.
Overall, though, using unemployment rate data does not debunk the assertion that immigrants take American jobs, in any way, that I can discern.
Also regarding the assertion on wages and this data:
Again, I do not see how this data in anyway debunks the theory that immigration holds down wages and labor. If the wages remain stagnant due to other immigrants being willing to do the jobs how does this debunk that assertion? If anything, it shows that it is valid. Given that wages have not increased. If there were not a glut of people to do those jobs at low wages, then it is fairly intuitive that the employer would raise wages simply to get workers. So, can you explain how you feel this data shows that immigration has not hurt the working class? Perhaps, the stagnation would not have gone on so long if there had not been immigrants to do the jobs.
This next data, if anything seems to prove that indeed it is immigrants who are responsible for holding down wages and labor:
Here it seems that you finally validate the assertions that you are saying the other facts debunk. Which is that the immigrants were the source of labor used to bust unions and thus the loss of wages to the american worker. You further validate this as a reality by noting that in countries with strong unionization there is indeed less disparity in wealth. All of which underscores that union busting in America by using immigrants as a souce of labor has resulted in a loss of wages.
April 20, 2006 7:02 AM | Reply | Permalink
rdf
The most comprehensive recent study of immigrant workers comes from the Center for Immigration Studies, a group that, unlike Mr. Bernstein's, advocates stricter controls on immigration.
http://www.cis.org/articles/1999/sactestimony3-11-99.html
Some excerpts:
The study, by the center's research director, Steven A. Camarota, found that immigrants are a majority of workers in only 4 of 473 job classifications — stucco masons, tailors, produce sorters and beauty salon workers. But even in those four job categories, native-born workers account for more than 40 percent of the work force. ...
"
George J. Borjas, a professor of economics ... at ... Harvard University, said he believed that the flow of migrants had significantly depressed wages for Americans in virtually all job categories and income levels. His study found that the average annual wage loss for all American male workers from 1980 to 2000 was ... 4 percent, and nearly twice that, in percentage terms, for those without a high school diploma. The impact was also disproportionately high on African-Americans and Hispanic-Americans, Professor Borjas found. "What this is, is a huge redistribution of wealth away from workers who compete with immigrants to those who employ them," he said.
Joel Kotkin, a fellow at the New America Foundation, a public policy institute, said that the American economy is large enough to absorb most of the new immigrants without pushing too many native-born Americans to the margins. But he said the situation could change dramatically if the economy were to enter a downturn, particularly in the housing sector where thousands of immigrants are laborers. If the housing bubble popped, Mr. Kotkin said, competition for the remaining jobs would be fierce and could stoke anti-immigrant sentiments. ...
April 20, 2006 7:38 AM | Reply | Permalink
rdf
Here is what was said on NPR on 7 April 2006
. The nation's unemployment rate fell to 4.7 percent in March, the lowest level since 2000, and employers added 211,000 jobs to their payrolls. Economists say growth in service and construction may explain why the unemployment rate for immigrants is lower than that of native-born Americans.
The Labor Department reported strong job gains in various areas last month, ranging from bars and restaurants to hospitals and professional service firms. Job growth was especially solid in the service and construction sectors.
The recent numbers reflect the first time immigrants have a lower unemployment rate than do native-born Americans.
Harry Holzer thinks a factor in the change may be the immigrants themselves. Many are under more financial pressure than native-born Americans and are more willing to work less-desirable jobs. Holzer is a professor at Georgetown University who focuses on low-wage workers.
Usually, people with less education have higher unemployment rates. And -- generally -- immigrants have less education than native-born Americans. But, Holzer says, they are finding more work by focusing on a growing number of unskilled jobs
"The immigrants overcome their lower education levels by targeting sectors where education isn't that important. And there is very strong demand at both the top and the bottom of the U.S. labor market right now."
Labor Department employees compiled the data by calling 60,000 households. In the interviews, they did not ask whether the immigrants were here legally or not.
April 20, 2006 7:41 AM | Reply | Permalink
A couple of points:
Unemployment numbers, while imperfect, don't just reflect those collecting insurance. Anyone who is looking for a job is included. They do leave out "discouraged" workers, however.
The Borjas study is not complely accepted which was the point of the original article that started this thread.
Many immigrants now start their own businesses, so they are employed but not "taking" jobs from others. Many are running low capital businesses like push carts or hair dressing, etc. Generally people willing to pull up their roots, move to a foreign country where they don't speak the language, and start with nothing, are those with the most ambition and drive to succeed. I thought those were the kinds of people we want Americans to be.
One of the unanswered questions is why blacks consistently fall behind in the formation of their own businesses. I've claimed previously it is because of a lack of access to start up capital. They are forced to go to friends and family for financing which limits the types of choices they can make. A nice study on this subject would be useful.
--- Policies not Politics
Daily Landscape
April 20, 2006 9:15 AM | Reply | Permalink
Those are the same people.
People are not registered or counted as unemployed if the are no longer collecting unemployment. The numbers do not reflect the countless individuals who are permanently unemployed or unemployed past a year, who are STILL looking for jobs.
Camarota's data is the most comprehensive and it very much correlates with Borjas data, as does Walters and Holzers. As you said let's not overlook these very real issues. Immigrant workers target, as the NPR/Holzer report data also shows, the low end of the working economy and they are indeed having a disproportionate impact on those jobs and wages for native born citizens.
Businesses owned by immigrants would not be the focus of this discussion, in terms of immigrants displacing the american worker. I consider this a tangent.
This is a tangent as well. It also does not address the data that shows that the unemployment rate for immigrants is lower than that for native-born american citizens. You are also not addressing the very real subset of workers that immigrants displace. The lower working class and HS dropout or HS diploma only workers.
However, blacks consistently fall behind in virtually all indices on health, economics, education and housing. This is due to the consistently denied, racism inherent in this society. Camarota's report also addresses, how blacks are the least likely 'native-born' americans hired by employers, who say they prefer 'hispanics and asians'. I would imagine the same factors are at work when it comes to blacks being business owner..the same prejudices prevail in terms of acquiring clients as in being hired, I suspect.
April 20, 2006 12:59 PM | Reply | Permalink
RDF referred to someone who argued that work enforcement or higher wages here would shift strawberry production to Mexico. So what? Long-distance strawberries are lousy, anyway, and I never buy them.
A very useful perspective on this is found in Devon's Blog, "Making the Invisible Hand Visible", in which a Mexican details how NAFTA put his family farm (in Mexico) out of business, and his father had to look for work in the US.
This young man says he comes from five generations of Mexican farmers, and now they work in Immokalee, Florida, where to earn $50 you have to pick two tons of tomatoes. That is 5,000 to 10,000 tomatoes.
This is slave labor. This is the crime.
April 20, 2006 2:54 PM | Reply | Permalink