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Immigrants: skills, occupations and locations

In a previous Regional Economist article, we remarked that in order to assess the costs and benefits of immigration (both legal and illegal) one has to consider the distribution of skills in the foreign-born population and compare it with the distribution of skills among U.S.-born workers. 1 Although an influx of low-skilled immigrants tends to negatively affect the wages of similarly skilled U.S.-born workers, this influx could increase the productivity of medium-skilled workers, who comprise the majority of U.S.-born workers, if their skills complement each other’s. Not only is the distribution of skills among the foreign-born population widely different from that of their U.S.-born counterparts, but the choices these immigrants make when deciding where to live in the U.S. also differ considerably from those choices made by natives. Furthermore, for similar levels of skill or education, immigrant workers tend to choose different occupations than native workers do.