"The most likely reason for a lack of empirical support for the presumed negative impact of immigration is the questionable assumption that the only impact of additional workers (immigrants) on the labour market is through wage competition. The presence of immigrants has broader effects on economic growth, both locally and nationally, that leads to rising wage levels for native born workers. Among the potential mechanisms are increased national savings, entrepreneurship and small business development, a faster rate of inventive activity and technological innovation, and increasing economies of scale, both in the production and consumer markets (Carter and Sutch 1999). There is a long-standing hypothesis in economic history that high levels of immigration stimulates economic growth by increasing demand for housing, urban development, and other amenities (Easterlin 1968). A recent study found that immigration provided the necessary labour supply for the rapid growth of manufacturing during the American Industrial Revolution from 1880 to 1920 (Hirschman and Mogford 2009)."
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Immigration to the United States
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