Tuesday, January 27, 2015

If You Pay Them, They Will Come

The National Bureau for Economic Research reports research findings show immigrants are drawn to states with higher welfare benefits..Breitbart California has the story.
The National Bureau of Economic Research (NBER) determined that “the generous welfare benefits offered by some states have magnetic effects and alter the geographic sorting of immigrants in the United States”– attracting many to California.
They quote NBER as follows:
Much of this clustering is because less-educated immigrants are more likely to live in California than less-educated natives. This is true even within groups of immigrants from a specific nation.
Breitbart continues summarizing Borjas' findings:
Borjas found the same clustering was evident in the numbers for recent female-headed immigrant households with children. Borjas also determined that the clustering in California holds true even if immigrants from countries sending large numbers of refugees to the United States are excluded and if immigrants of Mexican origin are excluded. So the clustering in California cannot be said to be entirely the result of California being adjacent to Mexico, or merely a favorite location for refugees.

According to the NBER, by changing its relative rank in providing welfare benefits, California saw a direct causal increase in the percentages of less-educated immigrants that came to California.
Of course there are other reasons to choose to live in California.