Abstract
This paper briefly reviews the present state of U.S. immigration policy from an economic perspective. It contends that the present system confounds two independent dimensions of immigration policy—residence and employment. It argues that far too much attention is paid to who is admitted to the U.S. and far too little to what people do once they enter. The proposed policy is a system of taxes and transfer payments designed to regulate the employment of foreign nationals and to compensate domestic workers who are adversely affected economically. The paper works out the economics of the tax and demonstrates that such a system could ideally remove all adverse economic effects of immigration.
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