Dollar & Sense: The Brookings Trade Podcast cover image

Why immigrants are America’s superpower

Dollar & Sense: The Brookings Trade Podcast

CHAPTER

The Effect of Immigrant Skills on Wages

If everybody were in the same skilled class, then it could have a pretty big effect on relative wages. When an immigrant comes in who has less education, we see the relative wages of those with more education actually go up because those are complementary sets of skills. But conversely, when immigrants with lower education come into the United States, we see wages of similarly situated people in the US who have less education fall. We see their wages fall, or at least their relative wages fall because they're more substitutes.

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