Abstract
This paper provides an overview of the current debate among economists pertaining to the effects of recent immigration on the earnings and employment of native-born workers. Since much of this debate revolves around methodological differences in research design, we devote much of our effort to discussing the various strategies that researchers have used to isolate immigrant competition effects, and attempt to clarify the strengths and weaknesses of each strategy. Our overall assessment is that the central tendency of the research evidence suggests that recent immigration has had only a modest effect on the labor market prospects of native-born Americans. Some potential hypotheses that may explain this lack of a large impact are capital accumulation and the imperfect substitutability between natives and immigrants.
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