High Skilled Immigrants’ Effects on High Skilled Natives’ Wages and Immigrants’ Effects on the Labor Force Participation Rate and Subsequent Growth Rate of Gross Domestic Product in the United States

Open Access
Author:
DiPietro, Karla M
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Fariborz Ghadar, Thesis Supervisor
  • Brian Davis, Honors Advisor
Keywords:
  • immigration
  • wages
  • gross domestic product
  • labor force participation rate
  • labor demographic
  • population demographic
  • foreign born
Abstract:
The following analysis will study the effects of the presence of high skilled immigrants in the labor force on the wages of high skilled natives. High skilled immigrants do not negatively affect the wages of high skilled natives, and in some cases even enhance employment opportunities through entrepreneurial and innovative endeavors. Immigrants, both high and low skilled, contribute to a valuable shift in the labor demographics in the United States based on the average age of their arrival. The consistent population demographic of immigrants supports the offsetting of the economic consequences of the United States’ aging population. The enhanced labor demographic contributes to the country’s labor force participation rate, an important factor in the growth rate of gross domestic product.