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Should the U.S. Have Locked the Heaven's Door? Reassessing the Benefits of the Postwar Immigration

Author

Listed:
  • Chojnicki, Xavier

    (University of Lille)

  • Docquier, Frédéric

    (LISER)

  • Ragot, Lionel

    (University Paris Ouest-Nanterre)

Abstract

This paper examines the economic impact of the second great immigration wave (1945-2000) on the US economy. Contrary to recent studies, we estimate that immigration induced important net gains and small redistributive effects among natives. Our analysis relies on a computable general equilibrium model combining the major interactions between immigrants and natives (labor market impact, fiscal impact, capital deepening, endogenous education, endogenous inequality). We use a backsolving method to calibrate the model on historical data and then consider two counterfactual variants: a cutoff of all immigration flows since 1950 and a stronger selection policy. According to our simulations, the postwar US immigration is beneficial for all cohorts and all skill groups. These gains are closely related to a long-run fiscal gain and a small labor market impact of immigrants. Finally, we also demonstrate that all generations would have benefited from a stronger selection of immigrants.

Suggested Citation

  • Chojnicki, Xavier & Docquier, Frédéric & Ragot, Lionel, 2005. "Should the U.S. Have Locked the Heaven's Door? Reassessing the Benefits of the Postwar Immigration," IZA Discussion Papers 1676, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1676
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    References listed on IDEAS

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    Cited by:

    1. Xavier Chojnicki & Lionel Ragot, 2016. "Impacts of Immigration on an Ageing Welfare State: An Applied General Equilibrium Model for France," Fiscal Studies, Institute for Fiscal Studies, vol. 37, pages 258-284, June.
    2. Milo Bianchi & Paolo Buonanno & Paolo Pinotti, 2012. "Do Immigrants Cause Crime?," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1318-1347, December.
    3. Giovanni Mastrobuoni & Paolo Pinotti, 2011. "Migration Restrictions and Criminal Behavior: Evidence from a Natural Experiment," Working Papers 2011.53, Fondazione Eni Enrico Mattei.
    4. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," RF Berlin - CReAM Discussion Paper Series 1104, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Akin Serife Nuray, 2012. "Immigration, Fiscal Policy, and Welfare in an Aging Population," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-45, July.
    6. Giovanni Mastrobuoni & Paolo Pinotti, 2015. "Legal Status and the Criminal Activity of Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 175-206, April.
    7. Vladimir Borgy & Xavier Chojnicki & Gilles Le Garrec & Cyrille Schwellnus, 2010. "Macroeconomic Consequences of Global Endogenous Migration: a General Equilibrium Analysis," Annals of Economics and Statistics, GENES, issue 97-98, pages 13-39.
    8. Milo Bianchi, 2013. "Immigration Policy and Self-Selecting Migrants," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 1-23, February.
    9. Giovanni Mastrobuoni & Paolo Pinotti, 2011. "Legal status of immigrants and criminal behavior: evidence from a natural experiment," Temi di discussione (Economic working papers) 813, Bank of Italy, Economic Research and International Relations Area.
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    11. Aracı, Doğu Tan & Demirci, Murat & Kirdar, Murat Güray, 2021. "Development Level of Hosting Areas and the Impact of Refugees on Natives' Labor Market Outcomes," IZA Discussion Papers 14267, Institute of Labor Economics (IZA).
    12. Giovanni Mastrobuoni & Paolo Pinotti, 2014. "The Ups and Downs in Women's Employment: Shifting Composition or Behavior from 1970 to 2010?," Upjohn Working Papers 14-212, W.E. Upjohn Institute for Employment Research.

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    More about this item

    Keywords

    computable general equilibrium; welfare; inequality; immigration;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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