Care of the folks over at the National Bureau of Economic Research, there are 4 reasons:
- Each immigrant creates 1.2 local jobs for local workers, most of them going to native workers.
- More than 60% of the jobs created by immigrants are in non-traded services (jobs which realistically can only be perfromed by a domestic workforce).
- Immigrants appear to raise local non-tradable sector wages.
- Immigrants attract native-born workers from elsewhere in the country.
Economists call it the "shot-in-the-arm" effect, namely, immigration adds to the labor supply, increases the consumer demand for services, can raise native workers' real wages, and each immigrant could create more than 1 job.
In short, immigration benefits all local consumers, native-born and immigrant. That statement is accurate even in a model in which immigration always lowers local wages in terms of tradeables, for example, manufacturing jobs whose products are traded internationally.
Why? Immigration raises real wages in terms of locally-rendered services, for example, healthcare, education, retail, and construction.
Let the discussion begin...
To read the National Bureau of Economic Research report, click on the following link:
"Are Immigrants a Shot In the Arm For the Local Economy?"