Sunday, July 09, 2006

immigration policy: Borjas vs. Card

Here's a link to one of the best articles I've ever read on the immigration debate. The evidence on both sides of the debate is presented fairly and in depth. The conclusion:
What the economists can do is frame a subset of the important issues. They remind us, first, that the legislated goal of U.S. policy is curiously disconnected from economics. Indeed, the flow of illegals is the market's signal that the current legal limits are too low. Immigrants do help the economy; they are fuel for growth cities like Las Vegas and a salve to older cities that have suffered native flight. Borjas's research strongly suggests that native unskilled workers pay a price: in wages, in their ability to find inviting areas to migrate to and perhaps in employment. But the price is probably a small one.

The disconnect between Borjas's results and Card's hints that there is an alchemy that occurs when immigrants land ashore; the economy's potential for absorbing and also adapting is mysterious but powerful. Like any form of economic change, immigration causes distress and disruption to some. But America has always thrived on dynamic transformations that produce winners as well as losers. Such transformations stimulate growth. Other societies (like those in Europe) have opted for more controls, on immigration and on labor markets generally. They have more stability and more equality, but less growth and fewer jobs.
In other words, the evidence on either side of the immigration debate is hardly conclusive. To my mind, that's a good indication that radical "solutions" aren't called for. If O'Reilly and Rush would calm down, I'd be grateful.

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