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Who Emigrates From Denmark? – LaborEcon
Ilpo Kauppinen, Panu Poutvaara, and I have just finished a paper that examines the selection characterizing emigrants from Denmark, one of the richest and most redistributive European welfare states.

The paper makes a neat theoretical contribution. It derives the conditions that determine whether the skill distribution of the emigrants stochastically dominates (or is stochastically dominated by) the skill distribution of the stayers. Because the rewards to skills in Denmark are low (relative to practically all possible destinations), the model predicts that the emigrants will be positively selected, and that the skill distribution of the movers will stochastically dominate that of the stayers.

Our analysis of administrative data for the entire Danish population between 1995 and 2010 strongly confirms the implications of the model. Denmark is indeed seeing an outflow of its most skilled workers. And that is one of the consequences that a very generous welfare state must learn to live with.

The paper is forthcoming in the Economic Journal.
econotariat  borjas  economics  macro  labor  redistribution  welfare-state  europe  nordic  migration  human-capital  compensation  inequality  egalitarianism-hierarchy  anglosphere  correlation  selection  study  summary  🎩  stylized-facts  wonkish  policy  unintended-consequences  comparison  polisci  political-econ  nationalism-globalism  dysgenics 
september 2017 by nhaliday
Trump crafting plan to slash legal immigration - POLITICO
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july 2017 by nhaliday
The New Narrative: Less Immigration Is Bad – LaborEcon
There is no upper bound to the hypocrisy of experts. It might be a lot of fun to keep track of this over the next few years, watching the dominos fall and all those “immigration-does-not-affect-wages” experts fall all over themselves as they switch to proving the economic awfulness of Trump’s actions because fewer immigrants mean higher labor costs, higher prices, more inflation.

But don’t hold your breath for any admission that they were wrong in the past. They will instantly switch to the former party line the minute the Trump immigration restrictions fade into history.
econotariat  borjas  economics  labor  realness  homo-hetero  crooked  wonkish  commentary  media  propaganda  cost-benefit  compensation  latin-america  critique  vampire-squid  hypocrisy  clown-world 
june 2017 by nhaliday
A new paper rekindles a tiresome debate on immigration and wages
Mr Borjas’ work has sparked plenty of controversy–his blog notes at least three challenges to his work, see here, here and here. After a few months of relative tranquility, Mariel has once again come into the limelight thanks to a new paper by Michael Clemens of the Centre for Global Development, a think-tank, and Jennifer Hunt of Rutgers University. Mr Borjas has since responded to this critique; their correspondence appears to have proceeded ad infinitum. (A working-paper response to Mr Clemens and Ms Hunts' critique can be found here.)
immigration  wages  Borjas  debates  economist 
june 2017 by HispanicPundit
U.S.-Born Economists Also Compete With Immigrants | Moody's Analytics
Economists tend to be pretty optimistic about the positive effects of globalization, including being generally pro immigration and pro free trade. This sometimes leads to accusations of selfishness: Of course economists are pro trade and immigration; they don’t have to compete with foreign workers like low-skilled natives do. This always seemed a little strange to me since I work at a company with offices all over the world. A quick look at the data confirms my suspicion. Economists being sheltered from globalization couldn’t be farther from the truth.
econotariat  rhetoric  economics  labor  migration  competition  realness  paying-rent  nationalism-globalism  borjas  populism  hypocrisy  regularizer 
march 2017 by nhaliday
Give Us Your High Achievers | The American Conservative
That’s just not the way it happened. In 1965—just a year after banning employment discrimination —Congress ended discrimination in immigration law as well. Race, religion, and national origin were no longer to be considered. Apparently the bill’s supporters genuinely didn’t expect this to change America’s ethnic makeup, but of course it did.

By 1990, lawmakers were so unconcerned about changing America’s makeup that they did it on purpose, setting up a “diversity” program that to this day hands out up to 50,000 visas every year—by random lottery—to people from countries that don’t send us many immigrants through the normal channels.

did not know that lol
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march 2017 by nhaliday
Earnings of Undocumented Immigrants – LaborEcon
First, the age-earnings profile of undocumented workers lies far below that of legal immigrants and of native workers, and is almost perfectly flat during the prime working years. Second, the unadjusted gap in the log hourly wage between undocumented workers and natives is very large (around 40 percent), but half of this gap disappears once the calculation adjusts for differences in observable socioeconomic characteristics, particularly educational attainment. Finally, the adjusted wage of undocumented workers rose rapidly in the past decade. As a result, there was a large decline in the wage penalty associated with undocumented status.
immigration  wages  Borjas 
march 2017 by HispanicPundit
The Cost of Welfare Use By Immigrant and Native Households | Center for Immigration Studies
- Jason Richwine

More recently, the Heritage Foundation's complete fiscal analysis (to which the author of this study contributed) estimated that the average legal immigrant household paid $4,344 less in taxes than it received in services in 2010, compared to a deficit of just $310 for the average native household.


For example, consider the reaction to the Heritage Foundation's estimate that illegal immigration and amnesty would generate a direct lifetime cost of $6.3 trillion. Supporters of amnesty quickly settled on a rebuttal point: Although illegal immigrants who receive amnesty may pay as a group $6.3 trillion less in taxes than they receive in benefits over their lifetimes, their labor boosts economic productivity so much that natives probably still end up in the black.12 That claim is, first of all, a tremendous exaggeration. Most of the gains from immigration go to immigrants themselves, not to natives.13 In a paper for CIS back in 2013, economist George Borjas estimated that illegal immigrants increased GDP by $395 billion to $472 billion. Of that amount, however, only about $9 billion went to natives.14 After extending that $9 billion annually over an adult lifetime of 50 years, productivity gains would add back just 7 percent of the $6.3 trillion fiscal cost.

Welfare Use by Immigrant and Native Households: An Analysis of Medicaid, Cash, Food, and Housing Programs:
- welfare = Medicaid/cash/food/housing
- 51% of all immigrant-headed households (legal or illegal) vs. 30% of native-headed
- >70% among Central-American-headed households
- higher for families w/ children

However, among the most educated households, those headed by a person with a bachelor’s degree or more, immigrant households are still much more likely to use all forms of welfare than native households. Therefore, other factors such as culture and the exchange of information provided by immigrant social networks also likely play a significant role in explaining immigrant “success” in accessing welfare programs.4
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march 2017 by nhaliday

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