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Spring 2020
ISSN 0890-913X
Volume 35, Number 1

Immigration and Economic Freedom: Does Education Matter?

Alexandre Padilla, Metropolitan State University of Denver
Nicolás Cachanosky, Metropolitan State University of Denver
Jonathan Beck, Metropolitan State University of Denver
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/index.php?action=ajax&rs=GDMgetPage&rsargs[]=2020 Journal of Private Enterprise Vol 35 No 1 Spring parte2.pdf&rsargs[]=0
TheJournalofPrivateEnterprise35(1),2020,2957ImmigrationandEconomicFreedom:DoesEducationMatter?AlexandrePadillaMetropolitanStateUniversityofDenverNicolásCachanoskyMetropolitanStateUniversityofDenverJonathanBeckMetropolitanStateUniversityofDenver––––––––––––––––––––––––––––––––––––––––––––––––––––––AbstractThispaperbuildsonPadillaandCachanosky(2018)andexaminesifimmigrantseducationalattainmentsmatter,particularlyforimmigrantswithloweducationalattainments,whentestingimmigrantsimpactontheeconomicfreedomoftheUSstates.Exceptintheareaofgovernmenttransfersandsubsidies,wedonotfindanyevidencetosupportsuchahypothesis.Inaddition,wefindthatthenegativeimpactoneconomicfreedomintheareaofgovernmenttransfersandsubsidiesthatisassociatedwithimmigrantswholackahighschooldiplomaislikelytrivial.Ourresultsarerobusttovariousspecifications.––––––––––––––––––––––––––––––––––––––––––––––––––––––JELCodes:F22,H70,O43Keywords:economicfreedom,immigration,institutions,stategovernmentI.IntroductionThispaperbuildsonPadillaandCachanosky(2018)andexamineswhetherimmigrantseducationalattainmentsmatterwhentestingimmigrantsinstitutionalimpact.Borjas(2014,2015,2016)arguesthatmuchoftheliteratureexaminingtheglobaleconomicbenefitsofimmigrationignoresimmigrantsinstitutionalimpact.1Hiscriticismis1Thisliteraturearguesthatcurrentimmigrationrestrictionsareinefficientlyhighand,asaresult,theygenerateasignificantworlddeadweightloss.Removingtheserestrictionscompletelyorpartiallywouldgenerateglobaleconomicbenefitsfargreaterthanthoseassociatedwitheliminatingbarrierstofreetrade.See,forexample,HamiltonandWhalley(1984);MosesandLetnes(2004);Walmsleyand
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