The Migration of People and the Global Issues of Multiculturalism

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Economics of Immigration When migration from
one country to Another occurs who are the winners
and losers? Is there an overall gain or loss to
all parties? Country A and country B Groups?
Consumers, workers, business owners,
Government.
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Workers migrate from B to A
Country A
Country B
Why do they migrate? Because wages in A are
higher than in B (could also be other reasons
civil liberties, Possibilities of a good future
with access To health, education, etc.)
economic types Of reason are important in this
understanding
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EFFECTS
Workers ? If immigrants compete with Them,
they have lower wages And less employment opportun
ities Businesses ? Since they hire immigrants
they make greater profits Consumers? If they
can hire immigrants For services and pay less For
goods made by immigrants They are better off.
Country A
GOVERNMENT? Depends on Taxes Payments
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Workers ? If emigrants leave good jobs more
employment opportunities Are available Businesse
s ? They lose well trained workers They gain
export markets? Consumers? Maybe left with
inferior quality Products and services if
Productive labor is gone. Income from
remittances?
EFFECTS
Country B
GOVERNMENT? Tax revenue Public investments In
Human capital
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Borjas Looks at part of the big
picture. Country A and only some of the
considerations For country A. Wrote HEAVENS
DOOR Concludes that US should favor
immigration Of skilled immigrants. Shows that
the 1997 National Academy of Science Found that
the skills of new wave immigrants Are declining
relative to natives. (mostly Mexican)
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• Borjas(contd)
• Is particularly concerned about unskilled
  immigration
• Maintains that the capacity of the United States
  to Produce depends on capital and skilled labor
• Otherwise, increased availability of unskilled
  labor will drive unskilled worker wages down

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Borjas (Economics of Immigration) Income
distribution Natives vs. Immigrants Workers
vs. Businesses Public vs. government The
Immigrant Surplus 7 billion dollars Calculation?
Native workers lose 133 billion Businesses gain
140 billion Cost of providing services cuts into
this surplus (the fiscal burden of immigration
welfare, education, Health)
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• Borjas suggests that we could
• Link immigration more to business cycles
• Allow skilled immigration on a point system
• as in Canada this could increase the size
• of the pie more and lead to less
• re-distribution of income
• What does he leave out?
• P. 27 (Table 3.2) of Stalker Book

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Passel and Fix Setting the Record straight The
costs and benefits of immigration Have been
calculated with flaws. Most immigrants in the US
are legal Taxes paid have been
understated Public services taken have been
overstated
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• Immigration should be used to serve the national
• Interest and therefore immigrants should
• Be given access to health and education so they
• Can integrate and allow the US to grow.
• Public services
• Undocumented immigrants are eligible for little
• or no public services
• 2) Those naturalized under IRCA 1986 are barred
• for 5 years
• 3) Legal aliens are not eligible for public cash
• assistance (except refugees)

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What do you think the Debate is about?
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SACHS IMMIGRATION POLICY AND ATTITUDES
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• The anti-immigrant mood in the US focuses on
• Access to public benefits
• competitiveness among labor, concern about
  housing, anxiety about tax burden, welfare
  abuse, crime
• English as an official language
• Measures to combat terrorism (pre-9/11)
• anti-Arab sentiments
• fingerprinting proposal

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FAIR anti-immigrant lobby Asians and Latinos
may be targeted as they have become implied
poster children for the movement against
immigrants The problem of chain migration
pouring into our borders has become a tool for
political manipulation Proposed Amendment to HR
2202 would bring guest workers into the US on a
conditional basis with little rights.
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Immigration Control and Financial Responsibility
Act of 1996 IIRAIRA (Illegal Immigration Reform
and Immigrant Responsibility Act of 1996) border
security increased asylum time limit of 1 year,
stricter requirements (ineligibility if denied
before or if committed an aggravated
felony) Exclusion anyone who overstays is
excludible from the US for x years or from
reentering Deportation detention and deportation
up Access to public benefits reduced Income
requirement for sponsorship of immigrants
Increased to 200?
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Criticism of anti-immigration bills 1994 census
shows that foreign born population in the US is
lower than in 1910 A greater percentage of
recent immigrants have more advanced degrees than
earlier immigrants or natives It is legal
immigrants who are most under attack from recent
bills