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            Regulating Low-Skilled
   Imigration in the United States

                       Gordon H. Hanson

With 11.9 million undocumented residents in the United States and illegal
entrants accounting for nearly half of the low-skilled foreign workforce, there
is widespread agreement that the current U.S. immigration system is broken.
Past reform agendas have emphasized strengthening border security, increas-
ing the number of visas for foreign guest workers, and defining a path to legal
residence for illegal immigrants already living in the country. When the
Obama administration addresses immigration reform-as it has promised to
do before 2012-should it pick up where previous reform proposals left off?
  In Regulating Low Skilled Immigration in the United States, Gordon H. Hanson
contends that efforts to curtail illegal entry will fail unless policymakers design
a system that is responsive to market signals that encourage individuals to
move to from low-wage labor markets in regions such as Central America to the
more robust labor market in United States. On the whole, immigration benefits
the U.S. economy by raising national income and making domestic capital
more productive. However, increasing the low-skilled population may also
increase the net tax burden on native residents. Successful reform depends on
attracting immigrants with strong incentives to be productive laborers who will
not place excessive demands on public services.
  Illegal immigration, as regulated by market forces, largely satisfies these cri-
teria, but at the cost of undermining the rule of law and leaving the immigrant
population unprotected. To create a better system for managing low-skilled
immigration, Hanson argues, Congress should preserve the features of the cur-
rent regime that serve the country well and strip away the features that corrode
civil society and harm immigrants.

Gordon H. Hanson is the director of the Center on Pacific Economies and a
professor of economics at the University of California, San Diego.



                                            ISBN-13: 9i78-0-8447-4370-7
                                            ISBN-10: 0-8447-4370-4
     American Enteprise Institute                         90000
     for Public Policy Research
     1150 Seventeenth Street, NW.
     Washington, D.C. 20036
                                           9 780844 743707
Cover im age: Brad Sm ith                 ................................................................


Low-Skill1ed


Immigration



   in the Ynited States


GORDON H. HANSON