Working Paper: CEPR ID: DP1491
Authors: Alan Barrett
Abstract: The skill levels of immigrants entering the United States has declined in recent decades, but most immigrants to the United States continue to be admitted on the basis of family contacts, without reference to labour market characteristics. This situation has given rise to a debate about the criteria on which immigrants are admitted or excluded. In this paper I examine how the relative skill levels of immigrants admitted under different criteria vary across countries, those criteria being the possession of highly-valued skills and family connections. I draw on the model of Borjas (1987) to predict how the relative skill levels of family-based and skill-based immigrant groups will differ across countries. Using data from the Immigration and Naturalization Service, I test the model and show that: (a) the relative skill levels of the two groups do indeed differ across countries; and (b) the pattern across countries is consistent with the Borjas predictions. The policy implication is that the effects of changing admission criteria will differ across countries, but in a predictable way.
Keywords: immigration; immigrant skill levels; immigrant class of admission
JEL Codes: J61
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Income Inequality in Countries of Origin (D31) | Skill Levels of Immigrants (J61) |
| Skill-Based Immigration (K37) | Wage Premium for Skill-Based Immigrants (J31) |
| Skill Levels of Family-Based Immigrants (K37) | Skill Levels of Skill-Based Immigrants (J61) |
| Income Inequality in Countries of Origin (D31) | Skill Differential between Family-Based and Skill-Based Immigrants (J69) |
| Positive Selection (C52) | Skill Differential between Family-Based and Skill-Based Immigrants (J69) |
| Negative Selection (C52) | Skill Differential between Family-Based and Skill-Based Immigrants (J69) |