The Economic Impact of Immigration August 10, 2004

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The Economic Impact of Immigration August 10,
2004
Rob Grunewald, Regional Economic Analyst Phil
Davies, Staff Writer Federal Reserve Bank of
Minneapolis
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• Additional Resources
• Region Magazine
• fedgazette
• minneapolisfed.org

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Feds Duties

• Payment Systems
• Safety and Soundness
• Monetary Policy

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Economic Impact of Immigration in Minnesota

• Immigrants fill job openings that would likely go
  unfilled.
• Social services for immigrants are investments,
  not just transfers.

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Total (1000s) and Percent of Population Foreign
Born, 2000
This will be a U.S. state map.
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Minnesota Foreign Born Population, 2000
Total 260,463 Percent of Population 5.3 Change
1990-2000 130
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United States Foreign Born Population, 2000
Total 31,107,889 Percent of Population
11.1 Change 1990-2000 57.4
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Wisconsin Foreign Born Population, 2000
Total 193,751 Percent of Population 3.6 Change
1990-2000 59
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South Dakota Foreign Born Population, 2000
Total 13,495 Percent of Population 1.8 Change
1990-2000 75
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Top Ten Immigrant non-MSA Counties in Minnesota
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Top 10 immigrant non-MSA counties

• Larger population
• Higher percent of employment in manufacturing
• Slightly higher levels of per capita personal
  income
• Compared with rest of non-MSA counties

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Population Growth, 1990-2000Minnesota Counties
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Population Growth, 1990-2000Minnesota Counties
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Possible Effects of Immigration on Labor Markets

• Displace native born workers
• Depress wages

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Similar changes in unemployment rates from 1990
to 2000.
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Income growth is also similar.
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• Immigrant labor has been a key, key factor in
  our success in keeping up with demand.
• -- John Swedeen
• President of StarMark, Sioux Falls

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• American kids dont want to take those jobs
  they leave for the Twin Cities.
• -- Zoltan Grossman
• University of Wisconsin-Eau Claire

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Foreign born population has strong need for
social and educational services.
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However, poverty rates of top immigrant non-MSA
counties fell at similar pace as MSAs.
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(No Transcript)
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• My great grandfather had access to a Norwegian
  newspaper through the county, just as Im trying
  to provide Somali newspapers on the computers for
  our Somali immigrants. For me its giving
  backimmigration is part of who we are, and this
  is just another point on the timeline.
• -- Pam Westby
• Director of Pelican Rapids Public Library

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Economic Impact of Immigration in Minnesota

• Immigrants fill job openings that would likely go
  unfilled.
• Social services for immigrants are investments,
  not just transfers.

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QUESTIONS
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Per Capita Personal Income, 2000Minnesota
Counties