black unemployment, correctional institutions, decrease in wages, employment, Hanson, High school dropouts, illegal immigration, immigration, low skilled workers, low-wage earners, native workers, prison, unemployment, US Commission on Civil Rights, wage decreases from immigration, white unemployment
“Dr. Hanson‘s coauthored research suggested that a 10 percent immigrant-induced increase in the labor supply is associated with a 4 percent decrease in black wages, a 3.5 percent decrease in the black employment rate, and a 0.8 percent increase in the black incarceration rate. This correlation held true in both national and state-level data, according to Hanson. The same data source showed that the effect of immigration on white men also produced a 4.1 percent decrease in wages, but had much less effect on employment and incarceration rates. Thus, wages went down for the skill group generally, but black men lost proportionally more jobs and disproportionally increased in incarceration rates. ” (US Commission on Civil Rights Briefing Report, April 2008)
Immigration has continued unabated and as of 2017 foreign born were 13.6% of the population, and their children added another 12%. See https://www.pewresearch.org/hispanic/2019/06/03/facts-on-u-s-immigrants%5D
US Congress’ reaction to economic crisis has long been to import more workers to take away American jobs. Such is the case right now: https://miningawareness.wordpress.com/2020/06/08/cheap-labor-lobbyists-40-million-in-u-s-out-of-work-proof-of-worker-shortage/
From The United States Commission on Civil Rights Briefing Report, April 2008:
“Professor Hanson (9) began his remarks by noting the dramatic rise in U.S. immigration, which rose from 5 percent in the 1970s to 12 percent by 2006. According to Dr. Hanson, immigrant workers make up one-seventh of the American workforce, and illegal workers account for one-third of the total immigrants now in the U.S. Dr. Hanson stated that around 60 percent of illegal immigrants have less than a high school education and compete for low-skilled jobs with native workers. He observed that economic theory would predict downward wage pressure as the result of the increase in the supply of workers in the U.S. economy. He noted the disagreement among economists, however, as to whether the data allows such a conclusion, indicating that studies on wage trends in different local labor markets often find small effects, and studies that look at wages on a national basis find larger effects. He stated that the strongest adverse impacts would be felt by workers competing for jobs with immigrants directly, that is, by low-skilled native workers.
His co-authored study (10) based on these data found that the employment rate of black high school dropouts fell from 72 percent in 1960 to 42 percent in 2000, compared to an 83 to 64 percent decline among white high school dropouts. In addition, the number of black men in correctional institutions rapidly increased during a shorter period (1980–2000), going from 1.4 percent of black high school dropouts to 21 percent.
Dr. Hanson noted that, surprisingly, there is little research on the connection between immigration and the employment and incarceration of black men. He questioned whether diminished wages resulting from immigration have encouraged some black men to leave the labor force and turn to crime.
To find the specific effects of immigration on black low-wage workers, Professor Hanson and his coauthors examined U.S. census data from 1960 to 2000 and found a strong correlation between immigration, wages, employment rates, and incarceration rates for blacks. He did not address the effects of illegal immigration separately.
Dr. Hanson‘s coauthored research suggested that a 10 percent immigrant-induced increase in the labor supply is associated with a 4 percent decrease in black wages, a 3.5 percent decrease in the black employment rate, and a 0.8 percent increase in the black incarceration rate. (11) This correlation held true in both national and state-level data, according to Hanson. The same data source showed that the effect of immigration on white men also produced a 4.1 percent decrease in wages, but had much less effect on employment and incarceration rates. Thus, wages went down for the skill group generally, but black men lost proportionally more jobs and disproportionally increased in incarceration rates.
Dr. Hanson stated that the economic changes created by the large immigrant inflow from 1980 to 2000 (half of which he attributes to illegal immigration) resulted in a labor supply shock that increased the number of workers in the U.S. by 10 percent, with an increase in the number of high school dropouts in the population by over 20 percent. These adjustments account for about 40 percent of the overall 18 percent decline in black employment rates and 10 of the 20 percentage point increase in the incarceration rate of black high school dropouts over the same period. Dr. Hanson noted that this influx reduced the employment rate of low-skill black men by eight percentage points. Dr. Hanson emphasized that although immigration played an important role in generating these trends, much of the decline in employment and increase in jail time would have occurred with a far smaller immigrant influx, and remains unexplained. He recommended that it not be restricted. In his opinion, the inflow of foreign workers accompanies more productive use of resources such as technology, plants, and equipment, and has brought overall benefits to the U.S. economy; therefore, he recommended instead that the country find ways to help those who have been hurt by immigration.” [So… Give our jobs away and we can’t afford to buy anything… who benefits? The stock market? Certainly not US workers. ]
“9 Gordon Hanson, testimony, pp. 8–16. Briefing transcript of record before the U.S. Commission on Civil Rights, Impact of Illegal Immigration on the Wages & Employment of Black Workers, Washington, DC, Apr. 4, 2008, (Hereinafter cited as ―Briefing Transcript‖).
10 Borjas, Grogger and Hanson, ―Immigration and African-American Employment Opportunities: The Response of Wages, Employment and Incarceration to Labor Supply Shocks,‖ 2006, NBER Working Paper 12518, http://ksghome.harvard.edu/~GBorjas/Papers/Borjas,%20Grogger,%20Hanson,%202006.pdf; see also Borjas, Grogger and Hanson, ―Immigration and the Economic Status of African-American Men,‖ January, 2009, http://irps.ucsd.edu/assets/027/9473.pdf, cf. Footnote 11; for a related inquiry concerning the United Kingdom, see also ―The Economic Impact of Immigration,‖ House of Lords Economic Affairs Committee, HL Paper 82-I, 2008, http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeconaf/82/82.pdf (all accessed Apr. 1, 2009).
Exerpted from: The Impact of Illegal Immigration on the Wages and Employment Opportunities of Black Workers A Briefing Before The United States Commission on Civil Rights Held in Washington, DC Briefing Report, April 2008; Approved 2010” https://www.usccr.gov/pubs/docs/IllegImmig_10-14-10_430pm.pdf
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