Chapter 22: Immigration

Efficiency gains

________ from migration- The same number of workers- rearranged among countries- produces greater total output and income after migration than before migration.

Economic immigrants

International migrants motivated by economic gain

Legal immigrants

Immigrants who are allowed to live + work in US

H1-B provision

Allows high-skilled workers to enter + work in the US for 6 years

Illegal immigrants

Immigrants who arrive illegally or enter legally on temporary visas + don’t leave

Human capital

Stock of knowledge, know-how, and skills that enables a person to be productive + earn income

Beaten paths

Routes taken previously by family, relatives, friends

Backflows

Return migration to home country

Skill transferability

Skills that are transferable between employers in different countries

Economic immigrants

International migrants motivated by economic gain

Legal immigrants

Immigrants who are allowed to live + work in US

H1-B provision

Allows high-skilled workers to enter + work in the US for 6 years

Illegal immigrants

Immigrants who arrive illegally or enter legally on temporary visas + dont leave

Human capital

Stock of knowledge, know-how, and skills that enables a person to be productive + earn income

Beaten paths

Routes taken previously by family, relatives, friends

Backflows

Return migration to home country

Skill transferability

Skills that are transferable between employers in different countries

Self-selection

Because some migrants choose to move while others with similar skills do not, it is possible that those who move possess greater motivation for personal economic gain and greater willingness to sacrifice current consumption for higher levels of later consumption

Efficiency gains from migration

The same number of workers-rearranged among countries-produces greater total output and income after migration than before migration

Brain drain

Emigration of highly educated workers

Remittances

Money transfer to home country

Negative self-selection

Movers are less capable and perhaps less motivated than similarly educated people who have jobs and stay in the origin nation

Compensating wage differential

Wage premium to compensate for undesirable work

Self-selection

Because some migrants choose to move while others with similar skills do not, it is possible that those who move possess greater motivation for personal economic gain and greater willingness to sacrifice current consumption for higher levels of later consumption. If so, these migrants may overcome the problem of imperfect skill transferability and eventually outdo domestic-born workers in wage and salary advancement

Efficiency gains from migration

The same number of workers—rearranged among countries—produces greater total output and income after migration than before migration

Brain drain

Emigration of highly educated workers

Remittances

Money transfer to home country

Negative self-selection

Movers are less capable and perhaps less motivated than similarly educated people who have jobs and stay in the origin nation

Compensating wage differential

Wage premium to compensate for undesirable work