Friday, August 11, 2017

The RAISE Act: Effect on Economic Growth and Jobs

Wharton

In a report published yesterday, the University of Pennsylvania's Wharton School concludes that the proposed immigration bill known as the RAISE Act would result in 4.6 million lost jobs by the year 2040. It also found that the U.S. economy would be 2% smaller than it would be under the current immigration policy during that time.

Last week, Trump threw his support behind the RAISE Act, a bill crafted by Republican Senators David Perdue and Tom Cotton. The proposal seeks to cut legal immigration to the U.S. by 50% within a decade.
 
Here are the "key points" highlighted in the Wharton study:
  • The RAISE Act, a bill recently introduced by Senators Tom Cotton and David Perdue and endorsed by President Trump on Aug 2, 2017, would reduce legal immigration while increasing the portion of new legal immigrants that are highly skilled.
  • By 2027, our analysis projects that RAISE will reduce GDP by 0.7 percent relative to current law, and reduce jobs by 1.3 million. By 2040, GDP will be about 2 percent lower and jobs will fall by 4.6 million.
  • Despite changes to population size, jobs and GDP, there is very little change to per capita GDP, increasing slightly in the short run and then eventually falling.
Click here for more on the report.
 
Hat tip to Professor Daniel Sokol
 
KJ

http://lawprofessors.typepad.com/immigration/2017/08/the-raise-act-effect-on-economic-growth-and-jobs.html

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Comments

RAISE Act? More like the Raze Act!

Posted by: anon | Aug 11, 2017 3:43:07 PM

Wharton says that Americans won't take the open jobs, but immigrants will. What is that based on?
"The RAISE Act also reduces employment because the domestic worker participation rate won’t increase enough to fill the jobs that would have been held by immigrants who are no longer allowed in the country. "

Posted by: Ben Frank | Aug 12, 2017 7:03:26 AM

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