Lecture 14: Abramitzky & Boustan: Immigration in American Economic History

what are the two major waves of US immigration?

1850-1920 (Europe, unrestricted; Age of Mass Migration)

1965-present (Asia & Latin America, more selective policies)

what did restrictions on immigration look like during the Age of Mass Migration vs. immigration in the present?

during the Age of Mass Migration, immigration was unrestricted

in the present, immigration is more selective

who decides to migrate and why?

immigrant selection refers to

the skills and education of a migrant compared to people in their home country

positive selection

migrants possess higher skills, education levels, and/or socioeconomic status than the average person in their home country

negative selection

migrants possess lower skills, education levels, and/or socioeconomic status than the average person in their home country

if there is a wider gap between high earners and low earners in the country of origin, what kind of selection is most likely?

negative selection

if the country of origin had a more compressed income range, what kind of selection is likely?

positive selection; higher-skilled immigrants would benefit more from the bigger gap in the receiving country

established network of migrants in the US encouraged

more migration by reducing uncertainties and providing support for new arrivals

what patterns of migration do we see today?

positive selection based on education and skills

US immigration policies tend to prioritize people with higher levels of education and skills

what patterns of migration did we see in the past?

it was a more mixed selection

migration from Western Europe- neutrally selected, while migration from peripheral European countries was negatively selected, with poorer individuals more likely to migrate 

why do we see more positive migration today?

people might make their migration decision based on the absolute difference in potential earnings; the US tends to have absolute wage gaps, making it more attractive for higher skilled people

costs associated with migrating vary based on skill level (skilled workers are more likely to qualify for work visas, have the funds to migrate, etc)

how do immigration policies affect immigration?

in the Age of Mass Migration, there was unrestricted migration, which may have led to more negative selection

what is the truth behind the American dream and the ability of immigrants to assimilate?

immigrants who stay in the US long-term experience wage/occupational growth at the same pace as people born in the US

if there is an income/job-level gap when immigrants arrive, it doesn’t disappear in a single generation

in the past, how did immigrants do economically when they arrived in the US?

long-term immigrants held jobs of similar status to native-born workers when they first arrived (1900)

European countries that sent immigrants were economically similar to the US

in the present, how do immigrants do economically when they arrive in the US?

the average immigrant earns less than native-born workers from the beginning

today, there is a larger economic gap between the US and Latin America & Asia (the main sources of immigrants)

what does the research on inter-generational mobility suggest?

there is a strong link between immigrant parents and their US-born children

the economic situation of the first generation has a big impact on the economic outcomes of their children

differences in education can weaken this tie

what investments do immigrants make to close the gap and assimilate?

learning English- leads to higher earnings and plays a role in other aspects of assimilation (service industry economy)

places where immigrants choose to live- ethnic enclaves can provide support but can also lead to isolation from the rest of society

changing names to sound more American- can reduce discrimination

complete cultural assimilate tends to take

more than one generation

what influences how fast immigrants assimilate?

how strong connections are within immigrant communities, discrimination faced by the rest of society, public investment in education and healthcare

immigration policies

reasons why immigrants migrate- refugees who cannot return to their home country are more likely to adopt skills specific to the US

what are the impacts of immigration on the US economy and native-born Americans?

historically, how similar the jobs/skills of immigrants were to native-born workers impacts jobs

now, immigrants are more concentrated in jobs in either the high or low end of the job market