Impact of Large-Scale Immigration on American Workers – CIS

Wage Losses. The same model can be used to estimate the wage losses suffered by American workers. Wage loss as a fraction of GDP = – “labor’s share of income” * “wage elasticity” * “immigrant share of labor force” * “native-born share of labor force.

Putting the numbers into the equation you get the following:

3% = -0.7 * -0.3 * 0.169 * 0.831

This is 3.01 percent of GDP, or $531 billion in wage losses suffered by American workers because of immigration. This is not trivial. There is nothing particularly controversial about this estimate and it stems from the same basic economic formula as the one above”.

However, as most Americans now know, the losses are much higher than that – way higher. $10 trillion in lost wages to be exact.