{"id":8570,"date":"2018-02-26T21:59:36","date_gmt":"2018-02-27T03:59:36","guid":{"rendered":"http:\/\/admin.patheos.com\/blogs\/janetheactuary\/?p=8570"},"modified":"2018-02-27T06:51:00","modified_gmt":"2018-02-27T12:51:00","slug":"immigration-absolved-job-stealing","status":"publish","type":"post","link":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2018\/02\/immigration-absolved-job-stealing.html","title":{"rendered":"Has immigration been absolved of job-stealing, again?"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><head><meta http-equiv=\"content-type\" content=\"text\/html; charset=utf-8\"><meta http-equiv=\"content-type\" content=\"text\/html; charset=utf-8\"><\/head><body><p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8624\" src=\"https:\/\/wp-media.patheos.com\/blogs\/sites\/533\/2018\/02\/steelworkers.jpg\" alt=\"\" width=\"600\" height=\"397\"><\/p>\n<p>Yes, I know, rhetorical questions generally have the answer, \u201cno,\u201d and in this case, I\u2019m referencing a <a href=\"https:\/\/www.washingtonpost.com\/news\/wonk\/wp\/2018\/02\/22\/fewer-americans-are-working-dont-blame-immigrants-or-food-stamps\/?hpid=hp_hp-cards_hp-card-business2%3Ahomepage%2Fcard&amp;utm_term=.2f0f64e91ed9\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">Washington Post Wonkblog article<\/a>, \u201cMillions of jobs are still missing.\u00a0 Don\u2019t blame immigrants or food stamps.\u201d\u00a0 (Pet peeve:\u00a0 article titles that are multi-sentence.)<\/p>\n<p>The article reports that<\/p>\n<blockquote><p>The share of Americans with jobs dropped 4.5 percentage points from 1999 to 2016 \u2014 amounting to about 11.4 million fewer workers in 2016.<\/p>\n<p>At least half of that decline probably was due to an aging population. Explaining the remainder has been the inspiration for much of the economic research published after the Great Recession.<\/p><\/blockquote>\n<p>And University of Maryland economists Katharine Abraham and Melissa Kearney, in a new paper, have broken out the causes for those missing jobs:<\/p>\n<ul>\n<li>Imports from China:\u00a0 2.65 million jobs<\/li>\n<li>Automation:\u00a0 1.4 million<\/li>\n<li>Minimum wage increases:\u00a0 0.49 million<\/li>\n<li>Increasing numbers of Social Security Disability recipients:\u00a0 0.36 million<\/li>\n<li>Increasing numbers of veteran\u2019s disability recipients:\u00a0 0.15 million<\/li>\n<li>Increases in numbers of incarcerated individuals:\u00a0 0.32 million<\/li>\n<li>Immigration (\u201cmost research indicates that immigration does not reduce native employment rates\u201d), food stamps, Obamacare impacts, men voluntarily leaving the workforce to be come stay-at-home dads\/husbands:\u00a0 no impact<\/li>\n<li>Decline in job mobility, video games\/opioids\/changing youth culture:\u00a0 unknown\/unquantifiable impact.<\/li>\n<\/ul>\n<p>So immigration is absolved then, right?\u00a0 I\u2019m not so sure.<\/p>\n<p>In the first place, some of these causes are not like the others.\u00a0 Increased numbers of disability recipients, incarcerated individuals, young adults preferring to live in mom &amp; dad\u2019s basement rather than get a job, are all factors contributing to a reduced labor force.\u00a0 Minimum wage increases speak to the relative desirability of workers to employers of unskilled workers.<\/p>\n<p>But globalization, automation, and immigration are different, and have to do with the number of jobs available.\u00a0 And the conventional wisdom, in all three cases, is that individuals displaced by these causes are able to find work in other fields, in a strong economy, and that the greater prosperity that these developments bring, opens up more jobs elsewhere.<\/p>\n<p>As it happens, the Post reports that they absolved immigration of having any impact on jobs not because of the economists\u2019 own research\/modelling, but as a matter of conventional wisdom\/prior research.\u00a0 And the <a href=\"http:\/\/www.nber.org\/papers\/w24333\" class=\" decorated-link\" target=\"_blank\" rel=\"nofollow\">actual paper<\/a>\u00a0confirms this; they cite one study that finds that each 1% increase in immigration was associated with a 1.2% decrease in wages of less-skilled natives, another that found that in the 20 years from 1980 to 2000, immigration increased the male labor force by 10% and caused a drop of 9% in the wages of high school dropouts, and an overall wage drop of 3%.\u00a0 Other studies, which examine effects on workers split into occupational rather than educational groupings, find smaller negative or even potential positive wage effects (though I\u2019m skeptical that splitting workers by occupation is the right way to go, when workers can move from one occupation to another more easily than they can move to higher education levels).\u00a0 But even the studies showing depressed wages don\u2019t determine a loss in jobs, so they discard immigration as a contributor to declines in jobs.<\/p>\n<p>This contrasts to their analysis of the impacts of offshoring, specifically to China, and automation, where they develop estimates for impacts of these elements and, as my kids would say, \u201cmath out\u201d a figure in number of jobs lost.\u00a0 They cite a 2016 study which calculated the effect of trade with China as a reduction in employment of 2.37 million jobs, which they increase by 12% by extending the timeframe to produce 2.65 million jobs lost, and\u00a0they calculate the effect of robots by multiplying out an estimate of 5.6 displaced workers per robot times 250,475 robots deployed in 2016, to yield 1,402,660 displaced workers.<\/p>\n<p>But it doesn\u2019t seem to me that there\u2019s a bright line between \u201cjobs taken by immigrants\u201d and \u201cjobs lost to robots or the Chinese,\u201d since any job that\u2019s held by a (new) immigrant, or which is created and for which a (new) immigrant is hired, is a job which could have gone to someone displaced in this manner.\u00a0 One might even say that immigration and globalization are two sides of the same coin:\u00a0 it\u2019s just a matter of whether the foreign-born workers willing to do the work for less live overseas or right next door. To be sure, immigrants, living in America, are consumers as well as workers, but their consumption isn\u2019t really comparable to native-born workers, since, at least for significant number of years after their arrival, generally speaking, they consume little here in order to send significant sums of money back home.<\/p>\n<p>In that sense, I\u2019ve always viewed limits on immigration \u2014 that is, as opposed to our <em>de facto<\/em> open immigration system, in which it\u2019s still relatively easy to find forged identification and a job \u2014 as a sort of backstop to globalization and automation, by providing or holding open for native-born Americans, jobs which aren\u2019t as easily automated\/offshored.<\/p>\n<p>The study seems to assume that all workers have a specific, unalterable occupational field, so that available employment in one occupation doesn\u2019t translate into available jobs for individuals in other occupations.\u00a0 But this is a very limiting assumption.\u00a0 Consider the fact that, when the auto factories in Michigan started to close, enough of those workers moved out-of-state that the phrase \u201cMichigan diaspora\u201d gets 731 google hits.\u00a0 How many of this new generation of former factory workers would have taken up jobs in the poultry processing plants, for instance, had these employers not found a ready workforce in the form of immigrants, often illegal immigrants, willing to accept lower wages and worsened working conditions?<\/p>\n<p>If there is no net impact due to immigration because it\u2019s a fallacy that there are a fixed number of jobs available, then the same ought to be true of automation and offshoring.\u00a0 That the authors conclude otherwise suggests that they didn\u2019t want to counter the prevailing accepted opinion on the matter.<\/p>\n<p>\u00a0<\/p>\n<p>Image:\u00a0\u00a0https:\/\/georgewbush-whitehouse.archives.gov\/news\/releases\/2001\/08\/images\/20010826-1.html<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Yes, I know, rhetorical questions generally have the answer, \u201cno,\u201d and in this case, I\u2019m referencing a Washington Post Wonkblog article, \u201cMillions of jobs are still missing.\u00a0 Don\u2019t blame immigrants or food stamps.\u201d\u00a0 (Pet peeve:\u00a0 article titles that are multi-sentence.) The article reports that The share of Americans with jobs dropped 4.5 percentage points from [&hellip;]<\/p>\n","protected":false},"author":2209,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[46,18],"class_list":["post-8570","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-immigration","tag-labor-force-participation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Has immigration been absolved of job-stealing, again?<\/title>\n<meta name=\"description\" content=\"Yes, I know, rhetorical questions generally have the answer, &quot;no,&quot; and in this case, I&#039;m referencing a Washington Post Wonkblog article, &quot;Millions of jobs\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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