1. 25 Immigration McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Averaging 1 million per year in Quotas, refugees, and H1-B provision
Number of Immigrants
Economic immigrants
Legal immigrants in U.S.
Averaging 1 million per year in
Quotas, refugees, and H1-B provision
One-third of population growth
One-half of labor force growth
25-2
LO1

3. Number of Immigrants
25-3
LO1

4. Illegal immigrants in the U.S. Estimated from Census data
Number of Immigrants
Illegal immigrants in the U.S.
Estimated from Census data
350,000 per year on average
High proportion from Mexico and Central America
Total of 11 million residing in the U.S. in 2009; 62% from Mexico
25-4
LO1

5. Number of Immigrants Total 1,130,818 1. Mexico 164,920 2. China 64,238
3. Philippines
60,029
4. India
57,304
5. Dominican Republic
49,414
6. Cuba
38,954
7. Vietnam
29,234
8. Colombia
27,849
9. South Korea
25,859
10. Haiti
24,280
25-5
LO1

6. Decision to Migrate Take advantage of superior economic opportunities
Escape political or religious persecution
Reunite with family members
Earnings opportunities
Increase value of human capital
Moving costs
Distance
Follow beaten path
Age
Other factors
25-6
LO2

7. Earnings opportunities Increase value of human capital Moving costs
Decision to Migrate
Earnings opportunities
Increase value of human capital
Moving costs
Distance
Follow beaten path
Age
Other factors
25-7
LO2

8. Economic benefits exceed costs Other issues
Economic Effects
Personal gains
Economic benefits exceed costs
Other issues
Uncertainty and imperfect information
Backflows
Skill transferability
Self-selection
25-8
LO3

9. Impacts on Wages, Efficiency, Output
Understand economic outcomes
Assumptions
U.S. and Mexico
Labor demand greater in U.S.
No long-term unemployment
Labor quality the same
Migration is legal and has no cost
Wage differentials key factor
25-9
LO4

10. Impacts on Wages, Efficiency, Output
United States
Mexico a A b
Wage Rate
Wage Rate Wu d D We We g B Wm G Du Dm c f F C
Quantity of Labor
(Millions)
Quantity of Labor
(Millions)
Immigration impacts wages, employment, and output
25-10
LO4

11. Impacts on Wages, Efficiency, Output
Wage rates will equalize
In the U.S.
Wage rate falls
Employment and output rise
In Mexico
Wage rate rises
Employment and output fall
25-11
LO4

12. Impacts on Wages, Efficiency, Output
Overall effects
World output rises
Efficiency gains
Other effects
Brain drains
U.S. natives lose wage income
U.S. businesses gain income
25-12
LO4

13. Fiscal burden > taxes paid Wages will not equalize
Fiscal Impacts
Fiscal burden > taxes paid
Wages will not equalize
Research findings are mixed
25-13
LO4

14. Fixed number of jobs in economy
Illegal Immigration
Employment effects
Two extreme views
Fixed number of jobs in economy
Immigrant employment decreases domestic employment 1-for-1
Immigrant work undesirable
No domestic workers displaced
25-14
LO5