🔑 Key Takeaways
- Only 3.6% of the global population are immigrants, but the percentage is higher in countries like the US, with significant societal impacts.
- Immigrants have always faced economic challenges and cultural adaptations when entering new lands, but have often found ways to thrive and contribute to their new societies
- Economic prosperity does not guarantee easy assimilation. Immigrant experiences are shaped by their legal and social status, economic opportunities, and interactions with other ethnicities.
- Immigration significantly contributes to the US economy through productivity and economic growth, but the legal capacity to accommodate demand is insufficient, leading to illegal immigration and border chaos, fueling political debates. Economists should recognize the central role of migration in the economy.
- Zeke's research on immigration and economic growth is driven by personal experiences and follows the evidence, debunking common myths about immigrant success.
- Children of immigrants today are economically advancing faster than US-born parents did a hundred years ago
- Historically, immigrant children thrived due to their parents settling in cities with manufacturing opportunities, providing better economic prospects despite fewer years of education.
- Princeton economist Leah Bustan's research shows refugees in the US start with lower employment and earnings but catch up and surpass other immigrants within a few years, possibly due to the role of local ethnic communities in helping newcomers assimilate.
- Immigrants' motivations to assimilate and change identities differ based on their circumstances, with some prioritizing faster assimilation for safety reasons and others prioritizing return home and savings.
- From the late 1800s to mid-1900s, fear and discrimination led to significant restrictions on immigration from Southern and Eastern Europe, causing a decline in immigration and negative economic consequences.
- The US immigration rate is currently below replacement level, and upcoming Freakonomics Radio episodes will delve into how the 1965 Immigration and Nationality Act transformed US immigration economics, politics, and culture. Interviews with Madeleine Albright and insights on Canada's approach will be included.
📝 Podcast Summary
Immigration statistics: Fact vs. Fiction
Despite popular belief, only a small percentage of the global population are immigrants. The actual number is 3.6%. However, for countries like the US, the percentage is much higher due to its status as a destination for immigrants. This trend has significant consequences, with individuals like Zeke Hernandez, who grew up in Uruguay but went on to become a professor at the Wharton School, demonstrating the potential impact of immigration on individuals and societies. It's essential to recognize the reality of immigration statistics and consider the complexities of this issue beyond emotions and politics.
Immigrants face challenges and adaptations throughout history
The history of immigration, as depicted in the Hebrew Bible and supported by archaeological findings, shows that immigrants have always faced challenges and adaptations when entering new lands. From the biblical story of Abraham's journey to the accounts of Jewish exiles in Babylon, we see that immigration involves leaving familiar surroundings, adapting to new cultures, and facing economic challenges. The ancient documents, such as the Al-Yuhudu tablets, provide insights into the economic lives of these immigrants and their ability to assimilate into their new environment. Despite the difficulties, immigrants have often found ways to thrive and contribute to their new societies. The story of immigration, as presented in this episode of Freakonomics Radio, highlights the resilience and adaptability of immigrants throughout history.
Ancient Jewish immigrants in Babylonia and Egypt: A study in contrasts
The experiences of ancient Jewish immigrants in Babylonia and Egypt, as depicted in various archives, offer valuable insights into the complexities and challenges of immigration throughout history. While economic prosperity can facilitate assimilation, the details of an immigrant's status, legal and social, and the economic opportunities available to them can significantly impact their success or hardship. For instance, the Judeans in Babylonia seemed to thrive economically and assimilate to some extent, but those in Egypt faced discord with other ethnicities, economic struggles, and even had their temple destroyed. Understanding these nuances can help us appreciate the intricacies of immigration experiences and the importance of creating welcoming and supportive environments for newcomers.
The Importance of Immigration in the US Economy
Immigration has been a lifesaver and life giver for many individuals and their families, including the speaker, who are descendants of immigrants. The US has been the top destination for immigrants due to social freedom and economic opportunity, and immigrants have significantly contributed to the country's productivity and economic growth. However, there is a huge demand for immigration that outstrips the US's capacity to accommodate it legally, leading to illegal immigration and chaos at the southern border. This issue fuels political debates, with starkly opposing views between Democrats and Republicans. Economist Zeke Hernandez argues that economists often overlook the central role of migration in the economy and that it's essential to understand the economic implications of people's movement.
Zeke's passion for economic growth influenced by personal experiences in Argentina
Zeke's personal experiences in Argentina during a period of economic crisis deeply influenced his passion for understanding economic prosperity and growth. This passion later led him to research the relationship between immigration and economic growth, despite initial moral qualms. His research is not biased as he had no intention of studying immigration specifically, but rather followed the evidence and realized the interconnectedness of business, capital, and people movement. It's important to note that much of the research he cites is not his own, but rather the work of other scholars. Additionally, the history of US immigration is complex and often filled with myths, such as the belief that European immigrants were able to succeed economically quickly upon arrival.
Immigrants and their children moving up the economic ladder faster than a century ago
The success stories of immigrants and their children getting ahead economically in the United States is not a new phenomenon. Bustan and Abramitsky's research in their book "Streets of Gold" found that children of immigrants today are actually moving up the economic ranks faster than children of US-born parents were a century ago. Contrary to common belief, the idea of America as a land of opportunity with streets paved with gold was not just a myth, but a reality for many immigrants and their children. Despite the challenges and hardships faced by immigrants, they were able to achieve economic success and pass it on to their children. This trend holds true for immigrants from various countries, including those from poorer backgrounds and Central America.
Immigrant parents' choice of settlement in dynamic labor markets historically boosted children's success
The success of children of immigrants in the US economy can be attributed to their parents' choice of settlement in dynamic labor markets historically. Immigrant families moved to cities with manufacturing opportunities, providing better economic prospects for their children despite having fewer years of education. In the modern era, while geography still plays a role, there is a need for further research as data is limited. Potential explanations include the value immigrants place on education, the role of extended families, and the inherent drive or grit of immigrants. Historically, immigrants were less educated and came from less wealthy backgrounds than the average person in their home country. However, in the modern era, immigrants are more educated and come from wealthier backgrounds, making the argument of inherent drive or grit less definitive. The role of factors like religiosity and extended families also require further investigation.
US's Role in Helping Refugees Succeed Economically
The US has unique properties that help immigrants, including refugees, succeed economically. Princeton economist Leah Bustan shared research showing that refugees to the US start out with lower employment and earnings but catch up and surpass other immigrants within a few years. This success is not universal, as refugees do not fare as well in Canada and Europe. Bustan speculates that the US's success lies in the role of local ethnic communities in helping newcomers assimilate, rather than heavy government intervention. Refugees in the US historically have had diverse reasons for immigrating, from economic opportunities to political persecution. A study by Bustan and colleagues found that refugees spoke English more fluently based on oral histories from the Ellis Island Foundation. This fluency may be due to the urgency and necessity of learning English for refugees as they adjust to a new life.
Immigrants' reasons for assimilating and changing identities
The motivation for immigrants to assimilate and adopt new identities, such as changing their names, varies greatly depending on their circumstances. For some, like refugees, the lack of a safe home to return to may encourage a stronger investment in their skills and a faster assimilation process. For others, like European immigrants a century ago, the plan to return home and save money might make learning English and assimilating less of a priority. The common belief that Ellis Island officials changed immigrants' names is a myth. Instead, families often chose to change their names themselves as a way to adapt to American society and improve their job prospects. Despite the economic benefits of immigration for both immigrants and the US, there is not a consensus view that it has always been good for the country. The motivations and experiences of immigrants have always been complex and multifaceted.
Fear and Discrimination Lead to Immigration Restrictions
The history of U.S. immigration has seen significant changes and restrictions, particularly in the early 20th century. Starting from the late 1800s, the countries of origin shifted from Western and Northern Europe to Southern and Eastern Europe, leading to widespread fear and discrimination. The establishment saw these immigrants as inferior and unassimilable due to their different religions, languages, and ethnicities. As a result, legislation such as the literacy requirement and the National Origins Act were enacted to limit immigration from these countries. This led to a massive decline in immigration, from 15% of the population in the 1920s to 4.7% by 1970. This decline had economic consequences, with American inventors and businesses becoming less productive and patenting fewer inventions due to the loss of skilled immigrants. The baby boom partly replaced the lost labor force, but not completely. The fertility rate during the baby boom was higher than it is now, but it still left a significant gap in the labor market that could have been filled by immigrants.
Exploring the Impact of US Immigration Policy Changes
The current rate of immigration in the United States is below replacement level, which was a surprise given the country's history as a nation of immigrants. The upcoming episodes of Freakonomics Radio will explore how the Immigration and Nationality Act of 1965 changed the economic, political, and cultural landscape of immigration in the US. Additionally, a bonus episode featuring an interview with Madeleine Albright, who was born in Prague and became a refugee twice in her youth before becoming US Secretary of State and UN Ambassador, will be released soon. The series will also touch upon how Canada might be using the US's old playbook in dealing with its own immigration struggles. The Freakonomics Radio team, including Alina Coleman, Zach Lipinski, and many others, work diligently to produce insightful and thought-provoking content. Stay tuned for more on this series, and remember, "They get the job done."