Large-scale immigration transfers wealth from poor Americans to wealthy Americans, even as it also makes immigrants wealthier and the nation’s economy larger, says a new analysis by George Borjas, a Harvard economist frequently cited by opponents of low-skill immigration….
…Borjas’ analysis was published the same day that a business-backed lobbying group predicted that large-scale immigration would raise per-capita income by $1,700 after 10 years…
On average, Borjas estimates, immigration costs American-born workers roughly $1,396 per year.
Nearly all of the $1.6 trillion extra value created by immigration is kept by immigrants, not Americans, Borjas reports. Illegal immigrants hold roughly a quarter of that increase, or about $430 billion, he estimates.
But the immigrants’ willingness to work for low wages also means that American employers can pay their Americans workers much less, he says.