Stanford Institute for Economic Policy Research (SIEPR)
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we consider a more extreme border wall expansion that, in addition to the segments constructed by the Secure Fence Act, “fills in” half of the remaining uncovered border. We estimate that such an extension would further harm college educated U.S. workers (whose income would fall by $7.60) and lead to an increase in income for less educated U.S. workers of only $0.58.
US Politics
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The effect of the Secure Fence Act on the U.S. economy – after accounting for changes in wages, the cost of goods, and the internal migration of U.S. workers – was largely negative. College-educated U.S. workers lost an equivalent of $4.35 in annual income, while less-educated U.S. workers benefited on average by only 36 cents. This number is less than the $7 per person construction cost of the wall.
US Politics
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policy considers lowering the costs of trade between the U.S. and Mexico, which should, in turn, increase wages in Mexico. We simulate a 25 percent reduction in trade costs between Mexico and the U.S. We estimate that migration flows between Mexico and the United States would fall by more than that caused by the Secure Fence Act. Unlike the Secure Fence Act, however, reducing trade costs substantially benefits U.S. workers –raising college educated U.S. workers’ welfare by an equivalent of $80.59 in annual income and less educated U.S. workers’ welfare by an equivalent of $58.67 in annual income.
US Politics
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