Immigration boosts innovation and wages in the US. The positive dynamic impact of immigration on innovation and wages dominates the short-run negative impact of increased labor supply. Increased immigration to the US since 1965 is estimated to have increased innovation and wages by 5%.

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The report pointed out how birth rates in the U.S. have been below the minimum replacement rate since 2008, meaning that the bulk of population growth since then has been the result of immigration. This has proved especially true for the country’s labor force. Nearly 80% of immigrants are of working age, according to the Census, and they account for 19% of the workforce, around 33 million people.

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