ABSTRACT
Reimers' finding of a statistically insignificant wage effect for native-born black dropouts earning the lowest wages was interpreted by Hamermesh and Bean to indicate that immigration had a less severe impact on these dropouts than those who were better paid. Other studies suggest that for the poorest paid dropouts, immigration has a significant adverse effect on their labor force participation rates. Initially, immigration creates annual burdens on taxpayers. Displacement effects do not necessarily justify immigration restrictions. Some researchers have assessed changing job niches at the national level. Franklin Wilson assessed whether or not immigration can explain this deterioration in job niche employment. Using a somewhat different set of industry-occupation cells, Wilson found that immigrant flows in the 1980s weakened niche employment of black men and lowered their occupational attainment. The social welfare burden does warrant a rethinking of immigration policies along the lines Borjas suggests.
