AFRICAN immigration to the united states and the effect on real wage By Adaolisa Nnaji.

Introduction What is Migration? Movement of people from one place to another. Reasons for Migration. Family. Schooling. Education. Etc.

Introduction Contd. Neoclassical Economics. Research question. How does Migration Affect Real wage both in African countries and in the United States? How will corruption influence my result? Years 1990 to 2015. Neoclassical Economics. Brain drain in Africa. It is damaging to Africa’s economy.

Literature Review on migration. The number of most immigrants come from people with higher schooling. (Prachi, Februray 2014). Rise in wages of sending countries. (Prachi, Februray 2014). Need for labor in receiving countries, E.g Europe. (Haas, 2007).

Literature Review on migration Contd. Poverty in African countries results to migration. (Hagopian, Thompson, Fordyce, Johnson and Hart, 2004). US attracts more share of educated Africans than Europe. (Capps, McCabe and Fix, 2012). Corruption decreases economic growth. (Kwabena Gyimah-Brempong, 2002).

WAi= β0+ β1 Xij + 2mj + 3Corrpj + 4 mj X 3Corrpj + ε. Hypothesis and Model Hypothesis: Following the Neo-classical model, real wage is higher in African countries. Expected Result: As immigration from Africa to the United State occurs: Real wage in US decreases. Real wage in African countries increases. Model: WAi= β0+ β1 Xij + 2mj + 3Corrpj + 4 mj X 3Corrpj + ε. i = person j= country

Implications of Hypothesis Educational Costs lost in sending country. The states they migrate to most has lower real wage. New York, Texas, California, Florida, Illinois, Georgia etc. The countries they migrate from the most have higher wage. Nigeria, Ethiopia, Egypt, Ghana and Kenya.

Conclusion Neo-classical theory of demand.

Conclusion Contd. Although Neo-Classical model suggests increase in wage in African countries. Corruption affects the result. Only few get the benefits from migration. We don’t get the expected results, which leads to: Migration. Brain drain.

Conclusion Contd. Future Work High income Low income To test the effect of corruption.

Questions??