Immigrants, Education and U.S. Economic Competitiveness
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Immigrants, Education and U.S. Economic Competitiveness
Audrey SingerThe Brookings Institution
University of Nevada Las VegasOctober 26, 2011
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U.S. Immigration: Current policy debates
Agreement that immigration policy should change, but little agreement on how
• Broad reform viewpoint• Specific reform viewpoint
– Enforcement focused– High-skill focused
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U.S. Immigration: Current policy debates
How many immigrants should we admit?
Which kind should we prioritize?
How do we modify immigration policy to better meet national and local economic needs?
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U.S. Immigration: New settlement patterns, new policy responses, new contexts for integration
• Economic restructuring, geographic component (metros + suburbs)
• Rise of new immigrant gateways• Proliferation of laws• Significance of suburban settlement
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Educational attainment of U.S. immigrants
The big picture:
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Immigrant contributions to the labor force
• Immigrants are 12.5 percent of the population but 16 percent of the labor force
• Immigrants have slightly higher rates of labor force participation but have the same unemployment rates as natives
• Immigrant workers are over represented in both low- and high-skilled industries: agriculture, construction, hospitality and IT, life sciences and healthcare
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Immigrant Skill Definitions:Education levels for all immigrants ages
25+
High-Skilled
• Immigrants with a bachelor’s degree or more
Low-Skilled
• Immigrants lacking a high school diploma
Middle-
Skilled
• Immigrants with a high school diploma and may have some college
All Immigrants
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The share of working age immigrants with a bachelor’s degree exceeds the share without a high school diploma
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
20
25
30
35
40
45
Low-Skilled
Mid-Skilled
High-Skilled
Note: Author s'analysis of weighted 1994-2010 Current Population Surveys
Per
cent
of w
orki
ng a
ge im
mig
rant
s
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Similar shifts in skills are evident among the working age US-born, although those without a high school diploma is a much smaller share
0
10
20
30
40
50
60
70
Low-Skilled
Mid-Skilled
High-Skilled
Note: Authors' analysis of weighted 1994-2010 Current Population Surveys
Per
cent
of w
orki
ng a
ge n
ativ
es
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In 1980, there were twice as many low-skilled as high-skilled immigrants, but by 2010, they had converged
Low-Skilled Mid-Skilled High-Skilled1980 39.5 41.5 19.0
Low-Skilled Mid-Skilled High-Skilled1980 39.5 41.5 19.0
1990 36.8 40.7 22.5
Low-Skilled Mid-Skilled High-Skilled1980 39.5 41.5 19.01990 36.8 40.7 22.5
2000 30.4 42.7 26.9
Low-Skilled Mid-Skilled High-Skilled1980 39.5 41.5 19.01990 36.8 40.7 22.52000 30.4 42.7 26.9
2010 27.8 42.6 29.6
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What accounts for the rise in the skill level of the foreign-born in the US?
• Rising demand for high-skilled workers in an increasingly knowledge-based economy
• Policy changes which have augmented the supply of skilled immigrants- such as H-1B visas which require a BA
• Increase in the number of international students
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Metropolitan Area Skill Definitions: Ratio of high-skilled to low-skilled
immigrants
High-Skill Destinations
Balanced Destinations
Low-Skill Destinations
More than 125 high-skilled immigrants for every 100 low-skilled immigrants
75 to 125 high-skilled immigrants for every 100 low-skilled immigrants
Less than 75 high-skilled immigrants for every 100 low-skilled immigrants
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Recent immigrants to metro areas with the fastest-growing immigrant populations have markedly lower educational attainment than immigrants settling elsewhere
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Skill levels within metropolitan gateway types
Why place matters:
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The Geography of Immigrant Skills
Skill ratio
Immigrant Skill Ratio, 100 Largest Metropolitan Areas, 2009
Source: Brookings Institution analysis of 2009 ACS data
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Former
Median skill ratio: 166
Former industrial centers with low demand for immigrant workers, especially low- skilled
Providence is the only metro area that is low-skilled
Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
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Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
Major- Continuous
Median skill ratio: 129
Areas with long history of immigrant settlement and diverse populations
Technology and finance centers
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Minor-Continuous
Median skill ratio: 51
Long history of Mexican settlement in Western metros
Contrast between the low-skilled metros in the south/west and the high-skilled suburban Boston/New York metros
Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
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Post-WWIIMedian skill ratio: 62
More than half are in Border states
CA and TX metros have large populations of illegal immigrants
Washington has a skill ratio of 189 due to the concentration of government jobs
Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
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EmergingMedian skill ratio: 73
Fast-growing areas create construction jobs, etc.
Overall fairly low-skilled, however Atlanta and Orlando are balanced metros
Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
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Re-Emerging
Median skill ratio: 125
Places where immigration levels have increased in recent years after slowing during the 20th century
Refugee resettlement
Denver is the only low-skilled metro area
Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
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Pre-Emerging
Median skill ratio: 82
Fast-growing immigrant populations
Three pre-emerging metro areas in North Carolina- each a different skill type
Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
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Low immigration
metros
Median skill ratio: 127
Metro areas that have never had high levels of immigration
Immigrants’ skill levels vary by metropolitan area due to historical settlement patterns and economic structures
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Key characteristics of low-skilled and high-skilled immigrants differ by
gateway type• Low-skilled more likely to be from Mexico and have lower English proficiency
• High-skilled more likely to be naturalized U.S. citizens
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Low-skilled immigrant workerscomparisons with US-born
• More likely to be employed (67% vs 49%) but income is lower
• Immigrants earn about $5,000 less annually
• Poverty rates are lower (23% vs 31%)
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High-skilled immigrant workerscomparisons with US-born
• Somewhat less likely to be employed and income is lower
• Immigrants earn about $8,150 less annually
• Poverty rates are low for both groups (6% vs 3%)
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How to reshape national immigration policy?
The big question:
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