Using the very large variation in the inflow of immigration across the states of US and other countries states we examine the force of immigration employment, average working hours, money growth and one most important, the total factors efficiency. At the same time we find striking proof that the total factors of increased productivity. These are some of the very robust reasons of controlling for many other determinants of efficiency that may vary with topography such as R&D expenditure, computer implementation, international rivalry in the form of sectors composition and exports. Thus many results suggest that immigration promotes efficiency task specialization and at the same time promotes the adaption of amateurish-based technology as the technological change would forecast. (Peri, November 2009)
In what ways can immigration help economy?
Immigration does not spoil the Economy nor does any Government lose their money because of immigrants. After all the people of the country makes more money. The common idea that money passes from government to company to clients and back again, if a minor amount of money is moved from manufactures to clients then at the same time a larger amount of money is retained. Immigrants, if accepted as general public, are entitled to benefits. Thus these people are draining over 2 billion dollars from benefits each year. However, once these people get familiar to our ways of living, then they can become very helpful members of society.
A basic reality about our economy is that as long as we infuse more supplies and services than we have, the more number of jobs which is nearly limitless. In reality, when the number of workers increases, the more the number of jobs we create. Thus the total number of services and the mass of the labor power has been tracked each other then reasonably closely for 50 years despite dramatic changes in immigration flows.
It’s a recognized fact that many of the jobs that immigrants are taking are that jobs that Americans are not taking. But we check immigrants from taking these vacant jobs, American producers and clients suffer the cost. (Powell, Friday, January 13, 2006)
Do you think economies should welcome immigration?
Yes definitely the economies should welcome immigration. An instance is the recent policies adopted by countries like Spain. Suppose that if a western nation were to loosen its borders, thus leading to an overflow of immigrants into that nation, the predicted outcome would be unemployment, rise in crime, social unrest, but Spain Disagrees on these predictions.
Over a period of the last ten years, Spain has taken in millions of immigrants from diverse backgrounds, but still it has emerged as the best economy in Europe. The growth average has been 3.2% since the last half decade. Spain is responsible for the creation of 50% of the new jobs in the Euro zone and even unemployment has fallen down. All these factors have been credited to immigration. Immigrants start out by taking the jobs that are unwanted by the local population. The taxes that they pay contribute for more than the public amenities they use.
Not only Spain, many other countries have adopted a pro-immigration stand and the success they have achieved is a testimony to the fact that economies should welcome immigration. Immigration also leads to intermixing of societies, thus providing a gateway to the concept of “ONE WORLD”. (spain:immigrants Welcome, 2007)
Giovanni Peri. (2009). Theeffect of Immigration on productivity: Evidence from US States. NBER Working Paper(15507)
Benjamin Powell. (2006).Get this straight: Immigration helps economy. Retrieved March 13, 2010. http://sacramento.bizjournals.com/sacramento/stories/2006/01/16/editorial3.html
Carol Matlack, Joan Tarzian. (2002). Spain: Immigrants Welcome Retrieved March 13, 2010.http://www.businessweek.com/magazine/content/07_21/b4035066.htm