The quantity and quality of new immigrants to the US

Since immigration to the US began to accelerate in the 1970s, economic and social policy issues surrounding immigration frequently raise concern and generate debate. These policy debates often aim to mitigate the costs of immigration and augment the benefits. Key to this is understanding the characteristics of immigrants, especially those related to economic success and integration. A commonly accepted finding in the economic literature regards the declining economic “quality” of successive immigrant cohorts as measured by differences in entry wages across cohorts. In this paper, I refine our understanding of immigrant cohort quality. I show that increasing competition in the labor market among immigrants can explain a significant portion of declining “quality”. This result suggests that labor market interactions are as important to immigrant economic integration as their inherent “quality”.