Immigration generally has a positive impact on the job market and wages. Regions of the United States that historically experienced significant immigration typically had higher gains in per-capita income than regions without significant immigration.
Many immigrants start and build companies that create jobs. Sergei Brin, cofounder of Google, and Elon Musk, founder of SpaceX, are well-known examples.
Because many immigrants are entrepreneurial, they create companies of all sizes in the United States. Jobs with these companies often come with competitive wages to attract and retain employees. As a result, immigration significantly contributes to the job market and wages.
Learn how immigration has a positive impact on the job market and wages.
Immigrants Found Companies at a Higher Rate Than Native-Born Americans
The rate of founding businesses is significantly higher for immigrants than for native-born citizens. Also, more immigrant-founded businesses become Fortune 500 companies than native-founded businesses.
Entrepreneurial immigrants start companies of all sizes. This job creation increases the demand for labor and pushes up overall wages. As a result, immigration positively impacts the job market and wages.
Immigrant-Founded Businesses Often Pay Better Than Native-Founded Businesses
Immigrant-founded businesses tend to be more innovative and have more patents than native-founded businesses. Also, immigrant-founded businesses tend to pay higher wages than native-founded businesses. These results have a positive impact on the job market and wages.
Immigrant-Founded Companies Improve Economic Outcomes
Immigrants create more jobs than they take. Therefore, immigration helps improve the economic outcomes for native-born employees.
Two main factors contribute to immigrants being more entrepreneurial than native-born citizens:
- US immigration policy prioritizes highly skilled workers. As a result, these workers have an easier time getting green cards than low-skilled workers.
- Most workers who are willing to immigrate and face the unknown are risk-takers who want to control their destinies. These are personality traits of entrepreneurs.
Immigrants have a positive impact on the job market and wages. As a result, regulating immigration remains an important part of the US economy.
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