Do Immigrants Create More Jobs?
Despite the common belief that immigrants take away jobs from U.S.-born residents, a new study by professors at Kellogg University suggests the opposite. The professors were inspired by past conjecture and data that implicated immigrants worsen employment and opportunities for native-born workers. They questioned whether policymakers focus too heavily on employees in the labor pool and not how immigrants can improve the economy by creating more appealing and powerful jobs. Past studies also confirm that immigrants create a better workplace. In fact, an article published on the Center on Budget and Policy Priorities’ website (CBPP) states that immigrants make up more than a third of the workplace in some industries. Additionally, 78 percent of the immigrant population is of working age, which helps replace elderly employees unfit to work. Instead of taking away employment from U.S.-born workers, they are creating more jobs and filling gaps where employment is needed.
Nowadays, prominent immigrant business owners are seen throughout the United States, which further strengthens the argument of the study. The professors’ main focus was not whether immigrants are entrepreneurial; it was whether they create large or small companies. A small company would likely not make a significant impact on the economy, but a large corporation would have an effect. In order to get an overview of how immigrants affect the economy, the professors focused on the rate at which U.S.-born workers and immigrants start companies.
Those with visa problems or other immigration challenges are encouraged to contact an experienced immigration lawyer for assistance.
How Do Immigrants Improve the Economy?
New and past data indicates that immigrants can strengthen the economy in several ways. Some key findings are listed below.
Entrepreneurs. The professors analyzed data from the U.S. Census Bureau’s Longitudinal Business Database, the 2017 Fortune 500 list, and the U.S. Census Survey of Business Owners to gather relevant and updated information. Between 2005 and 2010, 7.25 percent of the entrepreneurs were foreign-born and four percent were native-born. Within the same time frame, 0.83 percent of immigrant workers started a firm, and 0.46 percent of American-born individuals started a firm. In both instances, the founding business rate is 80 percent higher among foreign-born workers.
By cross-analyzing, the data, the Kellogg University study indicates that immigrants are more prone to be entrepreneurs. Instead of taking away important jobs from native American citizens, they help the overall economy by creating more prominent companies. One of the most important findings is that immigrants founded firms of all sizes in the study, which suggests an increase in the demand for labor and an increase in overall wages.
Better paying jobs. Another focal point of the study was the type of firms that the immigrants created within the analyzed time span. A way to measure this was by examining the number of patents granted to them. The research showed that immigrants were more likely to have patents compared with U.S.-founder firms. Additionally, foreign-founder firms paid slightly higher wages. The professors suggest that immigrant founders created more jobs as well as paid higher wages.
Low-skilled industries. Not all immigrants are highly educated or entrepreneurial workers as shown in the Kellogg University study. However, less educated workers still contribute to the economy. Another way immigrants improve the overall workforce is by filling job occupations that need employment. According to a published article by the CBPP, in 2018, some immigrants without a four-year degree were a part of the following industries:
- Farming, fishing, and forestry
- Building, grounds cleaning, and maintenance
- Textile and apparel manufacturing
- Food manufacturing
- Administrative and support services industry
Additionally, immigrants in those industries tend to be quicker and more efficient workers than native-born employees.
Higher education. According to an article published in the National Bureau of Economic Research in 2016, immigrants accounted for more than half of all science, technology, engineering, and math (STEM) workers with PhDs in the United States. The majority of the immigrants with advanced degrees completed their education in the United States as well. STEM degrees increase productivity and innovation in the United States. Advanced degrees lead to higher paying jobs, which allows for more opportunities for workers. Immigrants did not take away jobs from native-born workers; they helped create more jobs and improved the labor pool for native-born workers.
Why are Immigrants Seemingly More Entrepreneurial?
There is no clear-cut answer to why immigrants tend to be more entrepreneurial than their native-born counterparts. One professor from Kellogg University theorizes that it is easier to get a visa in the United States if one is more skilled, so immigrants are more inclined to be valuable workers. When they start to work in the United States, they already have motivation and skills to be accomplished.
The professor also suggests that it takes immense strength to move to another country. Courage and desire to have a better life in the United States inspire immigrants to be entrepreneurs and have higher paying jobs.
Why Should I Speak to an Immigration Lawyer?
Based on past and new data, it seems that immigrants do not take away jobs from native-born workers in the United States; they create more jobs and polish the overall workforce.
If someone is motivated to be a U.S. citizen, they must follow strict procedures and paperwork. For help with the legalities, one seeking citizenship should consult with a lawyer. A lawyer can help with any issues that arise during the immigration process.
Philadelphia Immigration Lawyers at the MC Law Group, LLC Protect the Rights of Entrepreneurial Immigrants
Many people are concerned whether immigrants take away jobs from native-born workers. However, data suggests otherwise. Skilled and entrepreneurial immigrants contribute to the increase of overall wages and are beneficial to the American economy. If you need help with problems with your visa or other immigration matters, let the Philadelphia immigration lawyers at the MC Law Group, LLC handle your case. For a free consultation, call us at 215-496-0690 or complete our online form. Located in Philadelphia, we serve clients throughout the tri-state area, including Pennsylvania, New Jersey, and nationwide.