Tyler Cowen directed me to a thoughtful essay on immigration by Reihan Salam. Salam favors an immigration policy that emphasizes integration and cultural cohesion. At the same time, I believe he misses some recent trends that suggest fears of cultural fragmentation are overrated. For instance, consider this comment:
In past eras, high immigration levels were matched by high native birthrates. The end result was that, even if immigrants had large families, these second-generation youth were greatly outnumbered by the descendants of the native-born. Investing in the next generation meant investing in the children of immigrants, yes, but also in the children of natives, who, by virtue of their numbers, would set the cultural tone.
Collapsing native birthrates have changed the picture, setting off a cultural panic among the likes of Rep. Steve King, the Iowa congressman who infamously tweeted, “We can’t restore our civilization with somebody else’s babies.”
Immigrant birthrates have recently been falling much faster than native-born birthrates. While the immigrant birthrate is still slightly higher, the difference is no longer as dramatic. Here are some recent data:
The birth rate for women in their reproductive years (ages 15-50) declined more than twice as much for immigrants as natives between 2008 and 2015. Between 2008 and 2015 the fertility of immigrant women feel from 76 to 60 births per thousand. In contrast, native fertility declined from 55 births per thousand to 49 births per thousand — a decline of six births per thousand. Although still higher than that of natives, immigrant fertility has only a small impact on the nation’s overall birth rate. The presence of immigrants raises the birth rate for all women in their reproductive years by just two births per thousand (3.6 percent). Even if the number of immigrant women 15 to 50 doubled along with births to this population, it would still only raise the overall national birth rate for women by 2.5 percent above the current level.
Salam also worries about a permanent underclass of low-skilled immigrants. But recent trends show a sharply rising share of immigrants are coming from Asia, and of course Asians actually out earn white Americans. Meanwhile, the share of immigrants from Latin America has declined sharply. Furthermore, there is a very high rate of intermarriage between whites, Asians, and Hispanics, and the children of these marriages (including my daughter) are generally regarded as culturally “white”. This is why it’s not likely that the share of whites in the US population will fall sharply over the next 50 years. America today is much like America of 100 years ago–a culturally fragmented society that will become more unified as the children of the immigrants assimilate and intermarriage increases. Fifty years ago, America was more culturally homogeneous than 100 years ago. The same trend toward integration is likely to occur over the next 100 years, even if we accept a lot of new immigrants.
This is not to say that Salam has no valid arguments. His call for a more skill-based immigration approach has some merit, as long as the US has a welfare state. (If we really cared about the poor, we’d get rid of the welfare state and have lots more immigration of poor people.) The US could easily shift to a more skills-based approach, and at the same time sharply increase the overall level of immigration—to something like 3 million per year. These educated newcomers would come from all over the world, indeed we already accept many highly skilled immigrants from regions such as Asia and Africa. Don’t assume “highly skilled” means “white”. (Unfortunately, the Trump administration has been trying to reduce immigration of highly skilled workers.)
Let me also say a word about the recent worry about AI taking our jobs. I cannot say that this problem will never occur, but right now we are very far from having a labor surplus. Over the past six months, I have experienced the tightest labor markets of my entire life. Service at many businesses has fallen sharply. I often ask people at restaurants and stores why the service has gotten so much slower, and the answer is always the same, “we can’t find enough workers”. Recently, we waited 15 minutes to get a table at a restaurant where two thirds of the tables were empty. They didn’t even have enough workers to seat customers. So while AI might conceivably be a problem in the future, recent trends are going in the other direction. For now, we could use a lot more low-skilled immigrants to serve as cooks, waiters, cashiers, hotel maids and farmworkers.
This reminds me of currency. People keep saying that electronic money will replace currency, while the actual use of currency keeps rising. Indeed US currency holdings are now far higher than 90 years ago, even as a share of GDP. While some of that currency is held overseas, the same is true in many other developed countries. Even at a global level, currency use doesn’t seem to be declining significantly. Yes, someday currency will probably be replaced, but for the rest of my life it will be an important part of our economy.
PS. The sharp decline in service quality means that American living standards are rising more slowly than GDP. However, on balance I’m still pro-tight labor markets. They are bad for me personally, but it’s very good for America.
READER COMMENTS
Mark
Sep 25 2018 at 3:52pm
Personally, I think it is odd that many of the same people who tout the superiority of American culture seem afraid that immigrants won’t adopt it. From my experience, the vast majority of immigrants and especially their children try to assimilate because they like American culture. In fact, culture is a clear comparative advantage that America has, with our cultural norms and products being exported all over the world. And the process of competing for new converts keeps American culture fresh and relevant.
P Burgos
Sep 26 2018 at 10:57am
Upper middle class America and the rest of America have pretty different family formation and child rearing norms. It looks like Asians assimilate to upper middle class norms, getting an education or valuable vocational training, establishing a career, getting married, having kids, and then staying married. It looks like Mexican and Puerto Rican immigrants assimilate to working class norms, having kids out of wedlock, not staying together with the parent of their child, having children with different people, not completing education or valuable vocational training, etc. Both are American norms, so immigrants and their children can be said to be assimilating. But is obviously and vastly superior to the other.
MikeW
Sep 25 2018 at 4:52pm
This seems misleading to me:
Isn’t a major reason for this that we sharply reduced immigration for that 50-year period?
Scott Sumner
Sep 25 2018 at 6:05pm
Mark, I agree.
Mike, That’s the standard view. But I think the main factor was the assimilation of those who came in the late 1800s and early 1900s.
Dylan
Sep 25 2018 at 8:22pm
Scott, I think Mike’s point is, would that assimilation have happened absent the limits imposed on immigration during this period? If immigration instead increased the incentives to assimilate would assimilation have been reduced?
Scott Sumner
Sep 25 2018 at 10:59pm
Dylan, Yes, I think the assimilation would have occurred in either case. It was caused by people working side by side in the workplace (and in schools.) As long as people are actively working with people of different ethnic groups, assimilation tends to occur. Plus the children tend to learn English, which helps a lot with assimilation.
For instance, Asian Americans are assimilating despite large inflows of new Asian immigrants. My daughter is highly assimilated.
Dylan
Sep 26 2018 at 10:20am
I’m inclined to agree, but like Mike, I think it is hard to say with certainty. I live in a neighborhood that has been primarily Hispanic for 20 or 30 years now. It’s not at all uncommon for me to come across people who have lived here for 20 years or more, who came as teenagers, who can’t speak more than a few words of English. That’s precisely because they don’t really work in jobs where they work side by side with people from other ethnic groups. It was pretty easy up until all us gentrifiers came in to work your whole life in businesses that catered to other Spanish speaking residents of the neighborhood. And even after we’ve been here for a decade, there are still plenty of restaurants, stores, churches, and other businesses where Spanish is the default, and it can sometimes take a little effort to communicate effectively. Most noticeably when I’m trying to get a car at JFK at 2am. But you’re right, their kids learn to speak English fine, at least once they start going to public school.
I’m not complaining about any of this, it’s one of the things I like about my neighborhood. But if you do favor quick assimilation, it seems to me that if you have a critical mass of immigrants coming in from the same region that it can become pretty easy for a whole set of parallel systems to spring up, and you can live side by side with people but never interact. I certainly know that I’m no closer to knowing Spanish, despite having lived here for a decade.
MikeW
Sep 26 2018 at 1:18am
Scott, maybe you’re right, but I don’t see how anyone can be certain. It seems quite plausible that the immigration slowdown helped to promote assimilation. I’m not very knowledgeable about this, but I have seen it said that the U.S. has reached the current percentage of foreign-born population twice before, in the mid-1800s and in the early 1900s, and both times, as now, there arose considerable opposition to further immigration.
Scott Sumner
Sep 25 2018 at 11:01pm
You see the same thing in LA county, where the unemployment rate is slightly above the national rate. I see the same thing when I travel to other cities.
other derek
Sep 26 2018 at 8:54am
Alternatively, as you age, you become more cranky and prone to notice service issues that have always been present. Even if not more cranky, you may have more time/flexibility that leads you to go to restaurants at off-hours when they are less well-staffed.
Benjamin Cole
Sep 26 2018 at 10:00am
Wages for restaurant servers in CA, from Indeed.com
$11.23 per hour
▲14% Above national average
$7.25– $22.70
Salary Distribution
How much does a Server make in California?
The average salary for a Server is $11.23 per hour in California, which is 14% above the national average. Salary estimates are based on 7,689 salaries submitted anonymously to Indeed by Server employees, users, and collected from past and present job advertisements on Indeed in the past 36 months. The typical tenure for a Server is less than 1 year.”
—30—
Somehow, $11.23 an hour does not strike me as reflecting a “labor shortage.”
Is that a “labor shortage” or (more likely) do some business models fail when they have to pay the market rate of $11.23 an hour for servers?
If restaurants are two-thirds empty, that suggests restaurant prices are driving away customers. Probably too many restaurants, and the weaker ones need to fold, unable to pay prevailing wages (and all the other onerous costs of business in CA, such as liability insurance, workers comp, and rents). With less restaurants, the tables fill up.
Everyone in CA wants to open a restaurant, or a winery, of produce a movie.
Robert EV
Sep 29 2018 at 10:10am
We are culturally quite different than the US culture of the late 1800s. I’m curious to what extent this is immigrant effects on culture, and to what extent on the expansion of the middle class and of middle class norms on culture.
How does US culture compare to the current culture of Britain, Germany, France, and the other countries which are the major cultural inputs for us? How much have the more recent immigrant communities affected this development? And how much is developed in-house based on the peculiarities of our social and physical environment?
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