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date: 24 August 2019

Abstract and Keywords

This article reviews recent empirical research on the economic effects of immigration. After summarizing the labor market literature, it provides a survey of research on the effects of immigration on prices, economic growth and efficiency, and government revenue and expenditures. Immigration lowers prices, raises the level of economic activity, and in this way boosts the income of natives. Research indicates that high-skilled immigration is particularly economically advantageous, because it increases innovation and entrepreneurship, which can boost productivity and long-term economic growth. Low-skilled immigration offers fewer economic advantages, primarily because of its sizable negative fiscal impact.

Keywords: economic impact, immigration, labor market, economic growth, government revenue, immigrants

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