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November 22, 2007

New Economic Study Shows Immigration in Cities a Net Positive

Policy Spotlight

Noted scholar Gionvanni Peri, Associate Professor of Economics at the University of California, Davis and author of a recent landmark study on the positive effects of immigration on overall wages, has produced another insightful, thought-provoking piece, this time on the effects of immigrants on cities. Professor Peri contends that immigration is disproportionately directed towards cities, so it is important to understand what happens to these cities, and the natives who live there, as a result.

In short, Professor Peri concludes that immigrants in general have a net positive effect on natives living in cities, consistent with the findings of other researchers. Specifically, Professor Peri found that immigrants exact positive wage effects on city-dwelling natives, and that immigrants help produce positive housing price effects, as well. For example, an increase in the share of immigrants by 1% increases rents by 1%, housing values by 0.3%, and wages by 0.3-0.4%. These effects are even more pronounced when only high skilled immigrants are taken into account, but, Professor Peri says, even where low-skilled immigrants are concerned the effects are overwhelmingly positive, since most American workers do not compete with them for jobs, yet still benefit from the work low-skilled immigrants do.

To read the full article, visit the VOX website at http://www.voxeu.org/index.php?q=node/734

Posted by VisaLawyer at November 22, 2007 07:27 AM

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