-Caveat Lector-

Immigration found to cut U.S. workers' pay

By Julia Malone, Palm Beach Post-Cox News Service
Tuesday, May 4, 2004

WASHINGTON -- Two decades' growth in the supply of immigrant workers cost
native-born American men an average $1,700 in annual wages by the year 2000, a
top economist has concluded.

Hispanic and black Americans were hurt most by the influx of foreign-born
workers, says a new report by Harvard University's George J. Borjas, considered
a leading authority on the impact of immigration.

The findings, to be released today, could influence immigration proposals now
being urged by lawmakers and the White House.

Congressional Democrats plan today to launch comprehensive legislation whose
provisions would legalize immigrant workers already here, guarantee labor rights
and allow an increased flow of legal, temporary foreign workers.

Earlier this year, President Bush announced his own overhaul for immigration
that would offer temporary legal status to workers now here and open the door
for greater numbers of "willing workers" from abroad to take temporary jobs in
America.

In his report, Borjas suggests that one effect of such proposals would be to
depress Americans' wage growth for all levels of education and job skills.

His study of two decades of wages concluded that U.S.-born high school dropouts
suffered the most -- a 7.4 percent drop in annual wages by the year 2000. For
high school graduates and workers with some college, the loss was a little more
than 2 percent. And for college graduates, wages were held back an average 3.6
percent.

Borjas found that U.S.-born Hispanic workers saw their wages reduced by an
average 5 percent, and U.S.-born blacks experienced a 4.5 percent drop. These
two groups faced the most direct competition from foreign-born workers, he said.

"The reduction in earnings occurs regardless of whether the immigrants are legal
or illegal, permanent or temporary," said Borjas, himself an immigrant from
Cuba. "It is the presence of additional workers that reduces wages, not their
legal status."

The report, an updated version of an article in the Quarterly Journal of
Economics last year, is being published by the Center for Immigration Studies, a
nonpartisan research group that favors lower levels of immigration.

The Borjas study on the impact is unusually bleak, said Jared Bernstein, senior
economist with the Economic Policy Institute, a research group financed by labor
unions. "I think the magnitude of the effect is quite large relative to other
research," he said, arguing that the impact on wages is probably somewhat less
dramatic.

Economist Robert Lerman, a senior fellow at the generally pro-immigration Urban
Institute, said that Borjas had made a "fine study" of the wage effects through
2000, but added that his conclusions might not hold for the next two decades.

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