Renewing AmericaRenewing America

Must Read

PrintPrint EmailEmail ShareShare CiteCite
Style:MLAAPAChicagoClose

loading...

NYT: How Immigrants Create More Jobs

Author: Tyler Cowen
October 30, 2010

Share

In this New York Times article, Tyler Cowen, a George Mason University economics professor, explains how immigrants have potential to catalyze U.S. economic growth.

In the campaign season now drawing to a close, immigration and globalization have often been described as economic threats. The truth, however, is more complex.

Over all, it turns out that the continuing arrival of immigrants to American shores is encouraging business activity here, thereby producing more jobs, according to a new study. Its authors argue that the easier it is to find cheap immigrant labor at home, the less likely that production will relocate offshore.

The study, “Immigration, Offshoring and American Jobs,” was written by two economics professors — Gianmarco I. P. Ottaviano of Bocconi University in Italy and Giovanni Peri of the University of California, Davis — along with Greg C. Wright, a Ph.D. candidate at Davis.

The study notes that when companies move production offshore, they pull away not only low-wage jobs but also many related jobs, which can include high-skilled managers, tech repairmen and others. But hiring immigrants even for low-wage jobs helps keep many kinds of jobs in the United States, the authors say. In fact, when immigration is rising as a share of employment in an economic sector, offshoring tends to be falling, and vice versa, the study found.

In other words, immigrants may be competing more with offshored workers than with other laborers in America.

Full Text of Document

More on This Topic

Video

A Conversation with Pham Binh Minh

Speaker: Pham Binh Minh
Presider: Robert W. Woodruff

Pham Binh Minh, minister of foreign affairs for the Socialist Republic of Vietnam, analyzes Vietnam's relationship with the United States and...

Audio

A Conversation with Pham Binh Minh (Audio)

Speaker: Pham Binh Minh
Presider: Robert W. Woodruff

Pham Binh Minh, minister of foreign affairs for the Socialist Republic of Vietnam, analyzes Vietnam's relationship with the United States...

Analysis Brief

The Vietnamese Boom

An economically thriving Vietnam is on the verge of becoming a World Trade Organization (WTO) member, but a holdup in U.S. Congress threatens...