Winners and Losers
-70% of GDP goes to workers, the rest going to the owners of the companies. Companies who use unskilled immigrant labor gain at the expense of the unskilled native.
(ie.) If, as stated above, 70% of GDP goes to workers, the rest to the companies who employ the labor, and if native born Americans constitute 90% of the population, they take home 63% of GDP. If there is a 10% increase in workers (due to immigration) and the resulting competition has lowered native GDP by 1.9%, their earnings will drop by $133 billion.(George Borjas)
-Where do these lost earnings go, who wins in this situation? The users of immigrant services and the employers. They earn a chunk of the lost $133 billion.
-There is a small amount to be gained from immigration, however the gain is not very signifigant, estimated at about 7 billion annually. This translates into an increase in per capita income of less that $30 a year.
"external effects"- Immigrants may bring knowledge, skills, information and abilities that natives lack. Natives will pick up some of these new attributes by working with immigrants.
