Immigration Policy and Less-skilled Workers in the United States: Reflections on Future Directors for Reform
This study by economist Harry J. Holzer, former Chief Economist for the US Department of Labor, reviews findings from the research literature on the benefits and costs of low-skilled immigration. His point of departure is the well-publicized debate between economists David Card of the University of California and George Borjas of Harvard, who have differed over the extent to which immigrant workers compete with native-born workers.
Holzer finds "limited negative impact" on native-born workers, but somewhat greater negative impact on earlier cohorts of foreign-born workers. On the other hand, benefits of less-skilled migration accrue to employers and to consumers in all income brackets. The paper concludes with discussion of the implications of research findings for future immigration reform. Holzer recommends charging employers who hire less-skilled immigrant workers "some modest fees to offset short-term fiscal costs," as well as adjusting admission levels based on macroeconomic conditions. He also advocates steps to legalize the undocumented already in the U.S. while stemming any new unauthorized flows.
Holzer, H J. (2011). Immigration Policy and Less-Skilled Workers in the United States: Reflections on Future Directors for Reform. Washington, D.C.: Migration Policy Institute.