The question of the relationship between immigration and the economy is incredibly robust and important. How immigration impacts GDP (both national and per capita), real wages, and other various economic factors is of the utmost importance in crafting immigration policy. As immigration is a hot-button topic, especially during this election cycle, it is necessary to separate fact from emotional rhetoric. The following pages will examine the how this topic is analyzed in the scholarly literature. The relationship between immigration and the economy is one of great complexity. How immigration impacts economic factors such as GDP per capita and real wages is of integral importance when …show more content…
Developed nations have taken very different routes in crafting solutions for when demand for highly-skilled labor exceeds supply. Some nations have chosen to pursue more liberal policies and open up borders while others become more restrictive and encourage native-born acquisition of skilled jobs (Cerna 2014). These policies are often a result of public opinion and the state of the economy before immigration has even been considered as a factor. In struggling economic times, immigration is viewed in a highly negative manner. When the economy is stagnate, job competition can create a conflict between the native and the immigrant populations. This can also results in a negative backlash against immigrant populations (Kehnrberg, …show more content…
The study suggests that by creating less restrictive immigration policies and integrating immigrants into a developed economy could produce a growth in GDP in excess of 6% over 100 years (Schou, 2006). Additionally, when examining GDP, particularly when comparing the United States to other developed Western countries. The United States, on average, only allowed approximately .12 immigrants per million dollars of GDP which was much more restrictive than its European counterparts. Analysis of the data suggests that immigration is more closely linked to GDP than vice-versa (Peters, 2015). In general, it is very difficult to estimate the contribution of immigrants to the economy as a whole because of the vast complexities and numerous factors surrounding immigration and the economy. However, a 2007 study did find that immigrants raise the national GDP by approximately $37 billion a year (West,