Microeconomics › Section N · Labor markets and income › Topic N.6

The economics of immigration

Immigration stirs arguments about culture and identity that economics cannot settle. What economics can do is trace who gains and who loses in labour markets and public budgets, using the same supply-and-demand tools as the rest of this section.

In this topic

  • What economics can and cannot say
  • Two ways to read the numbers
  • Where immigrants come from
  • An hourglass of skills
  • Worked example: a low-skill labour market
  • Immigrants are customers too
  • What the evidence finds
  • Budgets: federal and local
  • Worked example: one household's ledger
  • Policy choices
  • Common mistakes to avoid
  • Key takeaways

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