From a VoxEU post by Brian Cadena and Brian Kovak:
Recently, economists have noticed some disturbing trends in the US economy. Job creation, job destruction, and job-to-job switches are all in decline (Davis, Faberman, and Haltiwanger 2012; Hyatt and Spletzer 2013). Further, fewer and fewer people are making long-distance moves in order to take better jobs (Molloy, Smith, and Wozniak 2011). This slowdown is problematic because labour mobility, especially across geography, is a key contributor to the dynamism of an economy, and it tends to reduce inequality in economic outcomes across space (Blanchard and Katz 1992). Additionally, research consistently reveals that low-skilled workers (those with at most a high school degree) are especially unlikely to move between cities or states in response to changing job prospects (Bound and Holzer 2000, Wozniak 2010). Read more
Mary Meeker’s presentation on internet trends has an unexpected section at the end about high-skilled immigration, which itself includes a link to a much longer version that we recommend.
We could discuss the slides all day long, but here we’ll focus on just one particular issue. Read more
There’s a lot I disagree with in Ross Eisenbrey’s NYT piece on high-skilled immigration, but I’ll start with this:
The bill’s authors, led by Senator Orrin G. Hatch, Republican of Utah, argue that America would benefit from letting more immigrants trained in science, technology, engineering and math work in the country, with the sponsorship of high-tech companies like Microsoft and I.B.M. … Read more
American retailers will this week lobby US officials in Beijing to speed up the processing of visas for Chinese tourists and business travellers, as they seek to tap affluent visitors from emerging markets at a time of weak domestic consumption growth, reports the FT. US retailers argue that the current system places the US at a global disadvantage. In addition, businesses are pushing for faster visa evaluations so it will be easier to bring local managers to the US for training.
Here’s a chart that caught our eye from the CBO’s latest report on US immigration trends, updated with data through the end of 2009: