Thursday, November 19, 2009

Effect of Immigration on Productivity

A new paper (here) by Giovanni Peri (UC, Davis) finds robust evidence that immigration is positively correlated  with increasing total factor productivity and the adoption of unskilled-biased technology. Overall, a 1% increase in employment in a US state is associated with a 0.5% increase in income per worker.

Hat tip: Marginal Revolution.

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