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Study Examines Economic Impact of Low-Skill Immigration on U.S. Firms

A study published in the American Economic Journal: Applied Economics by researchers Michael A. Clemens and Ethan G. Lewis examines the economic effects of low-skill immigration in the U.S. using a randomized lottery for H-2B visas. The findings indicate that losing out on the lottery significantly reduces employment at firms, while winning firms experience increased revenue and investment. The study suggests that low-skill foreign and American workers are not effective substitutes, and an increase in H-2B visas could enhance production without negatively impacting American employment.