The Economic Benefits from Immigration

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Natives benefit from immigration mainly because of production complementarities between immigrant workers and other factors of production, and these benefits are larger when immigrants are sufficiently `different' from the stock of native productive inputs. The available evidence suggests that the economic benefits from immigration for the United States are small, on the order of $6 billion and almost certainly less than $20 billion annually. These gains, however, could be increased considerably if the United States pursued an immigration policy which attracted a more skilled immigrant flow.

Published: Journal of Economic Perspectives, Vol. 9, no. 2, (Spring 1995), pp. 3-22.

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