Immigrant Influx Raises Wages of Native Workers in California

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“One of the most common charges in the immigration debate is that immigrants compete for jobs and lower the wages of U.S.-born workers. This isnt the case, according to a study released today by the Public Policy Institute of California PPIC. Examining over 40 years of data using precise statistical methods, the analysis goes beyond most previous research to show comprehensively how immigration affects the job opportunities and wages of U.S.-born workers in the state.

Between 1990 and 2004 alone, new immigrants accounted for a 20 percent increase in the states total employment. Yet, rather than hurting job prospects for natives, the influx of immigrants increased the average real wages of native workers in California by 4 percent. The wage effects differ across education and experience categories. For example, wages increase by about 3 percent for natives with a high school diploma or a college degree and about 7 percent for native workers with some college. But almost without exception, the effects are positive. Even native-born high school dropouts see a slight uptick in their wages 0.2%.”

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