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Economics Today 18th Edition by Roger LeRoy Miller
Edition 18ISBN: 978-0133882285Economics Today 18th Edition by Roger LeRoy Miller
Edition 18ISBN: 978-0133882285 Exercise 2
Is U.S. Immigration Policy Creating a "Skills Gap"
The family of Rosario Marin, who served as the forty-first treasurer of the United States, emigrated from Mexico when she waS14. Marin recognizes the important contributions that immigrants have made to U.S. economic growth. For instance, immigrants or their children founded more than 25 percent of high-tech firms and about 40 percent of Fortune 500 companies.
Marin is concerned about what she perceives to be a growing immigrant "skills gap." The source of the problem, she argues, is an immigration policy that discourages U.S. companies from hiring immigrants who could make economic contributions. Marin points out that many firms are unable to hire any well-qualified foreign workers because of legislated caps on the total number of available work permits. Even companies that are able apply for a permit to hire qualified foreign workers must pay application fees exceeding $1,000 per worker.
Limiting immigration of foreign residents with skills while allowing many who lack skills could help explain the deteriorating earnings performances of immigrants. Those immigrants who arrived between 1960 anD1969 and initially earneD20 percent less than the average U.S. resident now earn about 20 percent more. Since the mid-1980s, however, the aver-age U.S. immigrant's earnings have remained at least 20 percent below those of the typical U.S. resident.
What relationship might exist between the entry of highly skilled immigrants and the production of new ideas and knowledge that promote economic growth?
The family of Rosario Marin, who served as the forty-first treasurer of the United States, emigrated from Mexico when she waS14. Marin recognizes the important contributions that immigrants have made to U.S. economic growth. For instance, immigrants or their children founded more than 25 percent of high-tech firms and about 40 percent of Fortune 500 companies.
Marin is concerned about what she perceives to be a growing immigrant "skills gap." The source of the problem, she argues, is an immigration policy that discourages U.S. companies from hiring immigrants who could make economic contributions. Marin points out that many firms are unable to hire any well-qualified foreign workers because of legislated caps on the total number of available work permits. Even companies that are able apply for a permit to hire qualified foreign workers must pay application fees exceeding $1,000 per worker.
Limiting immigration of foreign residents with skills while allowing many who lack skills could help explain the deteriorating earnings performances of immigrants. Those immigrants who arrived between 1960 anD1969 and initially earneD20 percent less than the average U.S. resident now earn about 20 percent more. Since the mid-1980s, however, the aver-age U.S. immigrant's earnings have remained at least 20 percent below those of the typical U.S. resident.
What relationship might exist between the entry of highly skilled immigrants and the production of new ideas and knowledge that promote economic growth?
Explanation
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When determining the productive capacity...
Economics Today 18th Edition by Roger LeRoy Miller
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