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Legal and illegal immigration: complements or substitutes?

The question of predicting what will happen under open borders involves trying to make predictions both about legal (authorized) migration flows and about illegal (unauthorized) migration flows. In this post, I’ll be discussing immigration mainly to attractive immigrant destinations such as the US. Also, for simplicity, I will gloss over the distinction between temporary and long-run migration, although your predictions may differ for these two categories.

Open borders advocates, restrictionists, and economic determinists would be led to different predictions by their different theoretical frameworks for understanding migration:

  1. The hardline economic determinist holds that migration levels are determined, not by the laws for and against migration, but by economic conditions. According to the hardline economic determinist, then, the total amount of migration under open borders would remain roughly the same as under the status quo, but probably a lot of currently “illegal” migration would become legal. In this view, there is one-to-one substitutability between legal and illegal immigrants. While I doubt that too many people are hardline economic determinists, this is a plausible reading of some of their writings, such as this post by Hein de Haas and this article by Jagdish Bhagwati.
  2. Most open borders advocates, as well as moderate economic determinists, hold that under more open borders, the total amount of migration will increase, and the level of illegal immigration will decrease (to near-zero levels — i.e., in the few thousands — under open borders), but the increase in legal immigration levels would more than offset this decline. In other words, legal immigration does substitute for illegal immigration, but it’s not a one-to-one substitutability and total levels of migration are affected by migration policies. For those who take double world GDP estimates as serious, this is the position that is most consistent with such estimates.
  3. Some restrictionists, however, have argued that increases in legal immigration could lead to increases in, or at any rate are unlikely to lead to decreases in, illegal immigration. An article by Washington Watcher for VDARE titled Legal Si, Illegal No? The Treason Lobby Says Immigration Is Inevitable So We Should “Relax And Enjoy It” makes this kind of argument (though it is not central to the post). Washington Watcher first concedes that under truly open borders, illegal immigration would drop to near-zero levels, but still argues that for a halfway solution (considerably expanded, but not unlimited, legal immigration) the quantity of illegal immigration would increase. Washington Watcher identifies two relevant phenomena — camouflage (whereby large quantities of legal migration make illegal migrants less conspicuous) and chain migration (where legal migrants are able to assist friends/relatives in migrating illegally, something that would not be possible if the legal migrants weren’t in the destination country in the first place). The relevant paras:

    A writer I know once had the chance to ask Griswold just how many visas we should give out. He replied that we should give the same number of additional visas to the total number of illegal aliens and that would satisfy demand.

    But this would not stop illegal immigration—in fact. it would increase it.

    Why? One reason is “Say’s Law” , one of the classic economic doctrines. It states that supply creates its own demand. With an unlimited supply of cheap labor, many jobs that would not exist in an advanced economy exist anyway. For example, in Third World countries, someone making what would be considered a middle class income in America can afford several servants. Because labor is more expensive in the U.Ss, servants only work for the very wealthy. But if labor prices went down, more people would hire servants. For the same reason, cheap labor undercuts the development of labor-saving technological innovations.

    Legal immigration also makes it easier for illegal aliens to live in America without detection. In 1960, 99% of the population outside of the Southwest was White or African American. Were it not for the fact that we admitted legal Braceros, then a farmer with hundreds of Mexican laborers would obviously be hiring illegal aliens. But the legal Braceros allowed for the illegal alien Mexican workers to blend in.

    Most illegal aliens would not even think of coming here to begin with were it not for legal immigration. When a Third World peasant sees that a friend or family member who came here legally can live a relatively extravagant lifestyle, they are going to want to come too—regardless of whether they can get a legal visa.

    Finally, there are a lot of people who have no intention of coming into this country illegally, either because they come from law-abiding societies and respect our laws too and/or they are falsely concerned that they might be deported or be unable to get a job.

Which of these comes closest to reality? I’m inclined to support (2), but then, that’s where my bias lies. I think that the phenomena observed by Washington Watcher in support of (3) are real and genuine phenomena, but I don’t think that these would be quantitatively sufficient to override the effects of (2). Particularly in the context of the United States, considering that the US already has large numbers of people of different ethnicities, camouflage is already almost fully operational, and so the marginal gains in camouflage through additional legal migration are probably not too high.

That being said, the phenomena observed by Washington Watcher might be important in the context of a country that has extremely closed borders, like Japan, to the point that there could be a significant increase in camouflage effects through increases in legal migration. If, for instance, Japan allowed substantially more legal migration from Vietnam, then the camouflage and chain migration effects might lead to more illegal migration from Vietnam as well.

How opponents of immigration on the left and right differ: territorialism versus citizenism

Post by Vipul Naik (regular blogger and site founder, launched site and started blogging March 2012). See:

Alex Nowrasteh recently tweeted criticisms of open borders from two fronts: Daniel Costa of the progressive Economic Policy Institute in a blog post titled On International Migrants Day, remember that guest worker programs aren’t the solution for immigration reform and Mark Krikorian of the center-right Center for Immigration Studies in a piece on National Review titled Black Unemployment: Just Don’t Mention the Immigration!

So I read both pieces. What struck me (and I also tweeted this) was that a quick reading of the articles wouldn’t reveal clearly which one was coming from a progressive/left-leaning perspective and which one was coming from a right-leaning/conservative perspective. Superficially, both arguments fell under what Bryan Caplan might dismiss as the master race argument — the idea that low-skilled natives are the ultimate interest group who should be given special preference in any policy discussion. It’s not my place here to critique this line of argument (though, if you’re interested, Nathan Smith blogged about teens and immigrants a while back, and Alex Nowrasteh had a critique of a related CIS study several years ago).

The point I want to make is that, despite the superficial similarity in the two pieces, there is one important difference, which I think is the key difference between the left-wing/progressive segment of opposition to open borders and the right-wing/conservative segment of opposition to open borders. Namely, progressive opponents of open borders tend to be influenced by a mix of territorialism and local inequality aversion. Their sphere of moral concern includes everybody who is within the geographical territory of their country, including citizens and non-citizens, and including both legal and illegal immigrants. And, in addition to being concerned about the absolute status of these people, progressive opponents of immigration are also concerned about inequality within the territory. As Arnold Kling notes in his three axes theory, the distinguishing feature of progressives (compared to conservatives and libertarians) tends to be their tendency to give more importance to the oppressor-oppressed axis (I’ve also written about why I find this sort of folk Marxism unconvincing, even when it is ostensibly pro-open borders). Combining a focus on the oppressor-oppressed axis with territorialism and local inequality aversion produces the kinds of proposals and concerns that Costa raised in his EPI blog post. Explicitly, it generally involves a combination of a path to citizenship, stricter enforcement, strong laws against worker exploitation, and an immigration policy designed to benefit currently low-skilled natives.

Anti-immigration individuals on the center-right, which probably includes all the hardcore restrictionist groups from CIS to VDARE and anti-immigration voices in more mainstream conservative outlets, are more likely to favor citizenism instead of territorialism. They are more likely to favor policies that explicitly discriminate in favor of current citizens. Immigrants and non-citizens who happen to reside within the geographic territory do not get the special status that citizens do, and in so far as they crossed borders illegally, it is considered moral to deport them. As per Kling’s three axes, center-right individuals are likely to be more focused on concerns of civilization versus barbarism, and while the alien invasion metaphor is probably an exaggeration, basic concern about how illegal immigration undermines the rule of law adds to the general worries about the harms created by immigration. Thus, center-right restrictionists are more likely to favor reform proposals that include attrition through enforcement and stronger border security while simultaneously reducing future levels of legal immigration, and while they are not completely averse to a path to citizenship, they would probably insist that it be restricted to a very special subclass (for instance, Mark Krikorian has expressed support for a version of the DREAM Act, but not the current version being passed around).

All in all, the main difference between progressive restrictionists and center-right restrictionists lies in how they want to deal with the illegal immigrants already here. Generally, restrictionists in both camps agree that future immigration levels need to be cut down or tailored to the interests of low-skilled natives, that enforcement (both at the border and in the interior) needs to be stricter, and that large-scale guest worker programs create more problems than they solve. Nonetheless, the differences between these two groups present unique challenges to those who are trying to come up with keyhole solutions. A keyhole solution that denies a path to citizenship, or walls off eligibility to the welfare state, might appeal somewhat to some (but not all) center-right restrictionists, but would be taken very negatively by progressive restrictionists.

A quick final note: I don’t mean to suggest that anybody who subscribes to citizenism or territorialism must necessarily be a restrictionist. Open borders do benefit many citizens, and keyhole solutions can be devised that help make them a win-win for the vast majority of citizens and those living in the geographical territory (as an example, see Nathan Smith’s DRITI proposal, or his blog post the citizenist case for open borders). Progressive restrictionists concerned about a path to citizenship might nonetheless come to the conclusion that expanded guest worker programs, despite their ills, and despite the lack of a path to citizenship, are still an improvement over the status quo. While I personally think of both citizenism and territorialism as morally flawed, there is no prima facie inconsistency between adopting these stances and supporting considerably freer migration than the status quo allows.

Bleg on Nathan Smith’s DRITI scheme

UPDATE: Added links to downloadable versions of the relevant chapter from Nathan Smith’s book.

One of the questions that many people have asked regarding the Open Borders site is — what’s the first step you propose? As a site, we do not take a very specific position, though we do recommend various keyhole solution-type proposals like immigration tariffs and guest worker programs as conversation-starters. But it would be useful to have a single scheme or proposal that attempts to address all the different aspects together, and which people on different sides of the issue can then critique.

My co-blogger Nathan Smith, in his seminal (or at any rate, should be seminal) book Principles of a Free Society (Amazon ebook) has come up with just such a scheme. It’s called Don’t Restrict Immigration, Tax It (DRITI) that combines the ideas of many keyhole solutions to the various objections that have been raised to immigration. Although the book is not available for free, it’s only $2.99, and I strongly urge you to buy it — the chapter on immigration alone is worth the price of admission for people who are interested enough to follow the blog. The full chapter can be downloaded as a Word Document or as a PDF.

Cover of Principles of a Free Society

But in order to make the idea more widely accessible, I have, with Nathan’s approval, put up a page about DRITI on this website. The page describes the key features of Nathan’s proposal, along with links to some online discussions of specific aspects of the proposal on this blog and elsewhere.

Although the scheme looks great in theory, there is a difference between theory and practice. I’ve already had a back-and-forth with Nathan on the aspects of the scheme that I was most concerned about (and his replies have largely satisfied me) — the relevant links are on the DRITI page. But others reading about it may have other questions. Please voice your views and ask your questions about the scheme in the comments below, and hopefully Nathan will reply to them, either in the comments here, or in a subsequent post.

The economic effects of Arizona’s immigration crackdown

The state of Arizona in the Southern United States, which shares a border with Mexico, has carried out various immigration crackdowns over the past few years, the most recent of which has been the SB-1070 law. Pro-immigration groups, along with various civil rights advocacy groups, have generally opposed these laws as wrong-headed, while groups opposed to immigration (particularly illegal immigration) have been generally supportive of these laws. Some pro-immigration groups, such as the Immigration Policy Center, have argued that the strategy of attrition through enforcement, which is the general approach that Arizona has followed, is flawed:

These conclusions are bolstered by new research from the Tomás Rivera Policy Institute in Los Angeles and El Colegio de la Frontera Norte in Tijuana. This research indicates that, when it comes to Mexican migration patterns, “northbound flows are holding steady with signs of increasing unauthorized migration, while southbound flows are decreasing. The result is that the size of the Mexican-born population in the United States has fully recovered from losses experienced during the recession.” Moreover, “given the available indicators as of mid-2012, it appears that even a relatively small increase in the demand for Mexican labor in the U.S. economy would prompt a positive response in the migration flows despite intensified enforcement efforts by the federal government, several states, and some local governments.”

I’ve been critical of this economic determinism in the past, and I think that in this respect, restrictionists are right when they argue that increased enforcement (a) decreases the number of new illegal immigrants entering the state, and possibly decreases the total number of illegal immigrants entering the country, and (b) leads some immigrants to leave the state, though this is usually to other states, not the country. Now, in the case of Arizona, the fact that other nearby states like California and New Mexico did not carry out similar crackdowns means that most of the attrition from Arizona happened at the expense (or to the benefit, depending on your point of view) of these nearby states. This reconciles the “economic determinist” observation that state-level immigration crackdowns did not affect the overall flow of illegal immigrants into the United States, and that the decrease is completely explicable by economic trends, while simultaneously vindicating restrictionists’ claim that attrition through enforcement does work at the state level.

But the mere fact that restrictionists’ “attrition through enforcement” strategy “works” in the sense of reducing the number or proportion of illegal immigrants (relative to the counterfactual) does not imply that the strategy “works” in the more relevant sense, i.e., that it brings about the improvements in native quality of life that restrictionists hope to achieve with their policies. To figure out what’s happening to native quality of life, it’s not good enough to look at the proportions of illegal immigrants. Rather, one needs to look at what’s happening to native.

For convenience, I provide here a spectrum of five possibilities:

  1. Dramatic cut in native quality of life. This kind of apocalyptic narrative relies on the idea that immigrants do jobs natives won’t do, and on the questionable assumption that when immigrants leave, the jobs will vanish entirely and there will be no adjustment or reconfiguration. In this view, for instance, if 90% of restaurant workers are illegal immigrants in a city, then when the immigrants leave, then 90% of restaurant jobs will vanish.
  2. Modest cut in native quality of life. This narrative relies on the economy readjusting to the absence of immigrant labor, but while the readjustment optimizes for the new ground realities, the fewer resources available overall means that native quality of life reduces somewhat.
  3. No effect on natives. In this view, either the readjustment is perfect, or the reduction in other problems that immigrants create (crime, welfare state use, etc.) compensates for the economic inefficiencies generated by their departure.
  4. Modest gain in native quality of life. In this view, native wages go up with less immigrant competition, and natives have more resources for themselves now that there is less crime, welfare state use, etc. by immigrants. A few rich and powerful natives lose out because they have to pay higher wages.
  5. Dramatic gain in native quality of life. In this view, all immigrant jobs get replaced by natives doing the same job, so native unemployment goes down to (near-)zero, crime is at an all time low, and the economy undergoes a renaissance.

(1) and (5) are relatively extreme positions, which people more often accuse their opponents of espousing than they themselves espouse. The relevant range is (2)-(4). My view is that the truth lies somewhere between (2) and (3). But is there any research on the issue in the context of Arizona?

The Immigration Policy Center has a page with various ways that Arizona’s immigration crackdown has hurt the state. Some of the data here does would lead a person to be skeptical of whether Arizona’s immigration crackdown has been beneficial to the state. Still, one does not need to be a hardcore restrictionist to find the material on the page unconvincing. The main problem: most of their anecdotes do little to specifically separate out the costs and benefits to natives in isolation, which is what the state-level citizenist really cares about. Also, some of their cost statements seem hypocritical. For instance, they argue that bad publicity from the law, and legal challenges to the law, themselves cost the state of Arizona a lot of money. That’s true, but it sounds an awful lot like victim blaming to me, given that the Immigration Policy Center is at the forefront of generating the bad publicity and supporting the legal challenges.

To my knowledge, the best single piece on the Arizona immigration crackdown, that specifically considers and attempts to isolate and discuss the effects on the native population, is the paper The Economic Case against Arizona’s Immigration Laws by Alex Nowrasteh. Alex traces what happened in Arizona and the nearby states of California and New Mexico in some of the industries that most heavily use (illegal) immigrant labor and would be most likely to be affected (positively or negatively) by Arizona’s crackdown: agriculture, construction, and the restaurant industry. Since there is too little data on SB 1070, Alex looks at the effect of earlier, less comprehensive, crackdowns on immigration.

His findings differ somewhat for the three sectors, but the construction sector findings are perhaps the most interesting: the share of natives employed in construction declined somewhat over the period studied by Alex, even as the share of immigrants employed in construction declined much more. Moreover, the decline in the population share employed in construction for Arizona was more than for California and New Mexico (Alex also told me over email that the decline in share of native employment in construction was also more for Arizona than for California, although he does not mention this detail in his paper). The comparison with other states is relevant because the confounding factor of a recession in the United States around that time that disproportionately affected the construction sector. Similar data discussed by Alex makes the strong case for position (2) in the spectrum I listed above: the immigration crackdown did not spell disaster for Arizona, but likely had a small negative impact on native quality of life.

I have a few reservations about the paper, which I will discuss in a subsequent blog post. Clearly, as with all social scientific analyses, there is a lot of guesswork involved regarding counterfactuals. If you start off with the neutral position which I list as (3) on the spectrum (i.e., no effect on natives), it’s possible that reading the paper, you may still stay at (3), though my sense is that the evidence presented in the paper should move you at least somewhat towards a (2). But at any rate, I don’t see the evidence as moving one’s position towards the restrictionist side.

To my knowledge, there isn’t any comparable analysis written from a restrictionist perspective. The Center for Immigration Studies has a page on SB1070, but this focuses almost completely on the legal aspects, not on the economic effects. The best I could do with a quick search on various restrictionist websites was an article on VDARE titled Arizona Economy Booming Without Illegal Aliens. But this three-paragraph article doesn’t offer any direct evidence — only a link to and quote from a USA Today news item:

As of February, the state had added 42,6000 new, non-farm jobs over the previous year, and state revenues have increased 8.7% so far in 2012. The Arizona Office of Tourism found the state generated $17.7 billion in direct travel spending in 2010 — a 7.9% increase over the previous year. Brewer said there may have been a negative effect in the immediate aftermath of the law, but that the state has rebounded and the “Arizona comeback” is here.

“Businesses are coming. People are recruiting,” Brewer said. “We should get a lot of kudos for what we’ve accomplished.”

Although this discussion might be more directly relevant to SB1070 — since it is over the time period relevant for SB1070, as opposed to Alex’s analysis which is for an earlier period — it does not seem to me to be a very convincing argument for the positive effects of Arizona’s immigration crackdown (just as some of the Immigration Policy Center’s anecdotes are not too convincing in the other direction). If there are more thorough and sophisticated analyses of the economic effects of Arizona’s laws from a restrictionist perspective, I’d definitely like to read through them. Please leave links and references in the comments if you know of any good analyses.

I’ll blog my criticisms and reservations regarding Alex’s paper in a subsequent post.

Robert Putnam, social capital, and immigration

So I just read Robert Putnam’s E Pluribus Unum: Diversity and Community in the Twenty-First Century.” (links to related material are available on this site at the social capital decline page).  Before I comment, let me give a personal note, which will explain the angle from which I’m looking at this.

I can get along with almost anyone, quite happily. Naturally, there’s a special edge to conversations with attractive young women (of all races), but for almost anyone, there are interesting details of their lives to explore. In the extensive travels of my younger days (“seeing the world,” as the saying goes), I interacted with tour guides in southern China, the daughters of illiterate peasants; Chinese girls selling paintings on Tiananmen Square; huge crowds of Chechens, mostly vacationing teachers, in Nalchik, Kabardino-Balkaria in the Russian North Caucasus; a Buryat or Mongoloid ethnic in Sibera; Tuvans; Malawian peasants; Malawian government bureaucrats, and teachers; Rhodesian exiles scattered around Malawi; backpackers in Europe who came from Australia, Poland, Britain, Ireland, Canada, Japan, Korea, Germany; talkative Italian old men on the streets of Rome; vendors all over the place; taxi drivers all over the place; students of English; grad students of many fields; the congregation of a certain black Baptist church in Northeast DC; college students of all majors; former prisoners of conscience sitting next to me on a bus in Tajikistan; singer-songwriters at a festival in Dombai in the Russian North Caucasus… the list goes on and on.

I can get along with almost anyone, quite happily. But I can even more happily immerse myself in writing or reading books. A few years ago, I discovered audiobooks. It was just after my divorce, so I was glad to be distracted from my own thoughts at the time, but the habit stuck, and I soon noticed that my long-standing dislike of eating alone had been reversed. On a certain day, I suppose it must have been in early 2007, a girl from Harvard, quite attractive, was to meet me for lunch. I was working at the World Bank, and she wanted advice on how to get a job there. During the morning, I found I was resenting it. Why? Because I was in the middle of a brilliant novel, which I would have been able to “read” (listen to) during my lunch break, but for her. Then it hit me. Wait a minute, I thought. Am I actually resenting the chance to go to lunch with a cute girl? Well, yes, I was. It sounds rather brutal, but in the past six or seven years, the conclusion is undeniable that few people can compete with an audiobook for entertaining, enlightening, and edifying me. There are some: many friends, all far away alas, for ten minutes of whose company I’d go ten hours without any entertainment at all. Bluntly put, everyone else is (at least as a conversational companion) an inferior substitute for having the best thoughts of mankind fed into my ears via wires. I was grateful for their company in my younger days only because the iPod hadn’t been invented yet. (That’s not the insult it may seem to be, because I am not denying their inherent value, which is very great. But the value of my casual interaction with them is limited.)

These experiences color my reading of Robert Putnam’s work. For Robert Putnam, “social capital” is good. When I eat lunch with someone, he’d nod his head in approval, especially if that person is as different from me as possible. When I eat lunch alone with an audiobook, he would shake his head with dismay. He could doubtless understand the logic of “revealed preference,” i.e., if I could have invited people to lunch but chose to eat alone instead, I must be happier that way. But I suspect he wouldn’t believe it. And it’s true, of course, that revealed preference can’t be applied straightforwardly to social capital issues, which always involve the interests and choices of multiple people. A decline in social capital might reflect that (a) we’ve found something to do that we like better than interacting with each other, or that (b) we’ve gotten worse at solving the coordination problems involved in interacting with each other. An economist would say that (a) is unambiguously good, while I think Robert Putnam, a bit paternalistically, would object; but even an economist would agree that (b) is bad. Putnam is aware of some potential downsides of social capital– gangs, for example– but I don’t think he adequate appreciates the scarcity of time. Continue reading Robert Putnam, social capital, and immigration