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Immigration Is Good for High and Low Income Earners

1/13/2017

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A new paper from Vox states,
An increase in average income per capita does not necessarily guarantee that the broad population is better off. If all the income gains were captured by companies’ top executives and shareholders, the broad population might not benefit and could actually be worse off. Our analysis finds, however, that the gains from immigration are broadly shared across the population. Migration increases the average income per capita of both the bottom 90% and the top 10% of earners, even though high-skilled migration benefits more top earners — possibly because of a stronger synergy between migrants and natives with high skills. Moreover, the Gini coefficient — a broad measure of income inequality within the bottom 90% of earners — is not affected by the migrant share.
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