ABSTRACT

Historically, the most contentious issue in the debate surrounding immigration has been the effect of immigrants on the wages and em­ ployment of native-born citizens. During the 1980s, this issue took on particular urgency as low-skilled workers experienced a decline in their real wages. At the same time, the decade witnessed the largest inflow of immigrants since the 1900s, many of them low skilled. Pol­ icymakers and researchers seeking the cause of the decline in real wages of low-skilled natives are thus focusing on the possibility that immigrants have increased the relative supply of low-skilled workers and driven down wages of low-skilled native-born workers.