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Davide Gandolfi, Timothy Halliday and Raymond Robertson
Large wage differences between countries (“place premiums”) are well documented. Theory suggests that factor price convergence should follow increased migration, capital flows, and commercial integration.
Using data collected by the North Carolina Growers’ Association (NCGA), the leading employer of workers with H-2 visas, Michael Clemens shows that foreign workers have almost no direct effect on the employment prospects of US workers in H-2 occupations. Instead, they actually a large and positive indirect effect on US employment by contributing to North Carolina’s economy.