Economic Policy Review

The Internationalization of the U.S. Labor Market and the Wage Structure

January 1995Volume 1, Number 1
JEL classification: J31

Author: George J. Borjas

The increasing internationalization of the U.S. labor market has had important effects on the wage structure. Immigration has probably increased wage inequality because recent immigrant waves tend to be less skilled than earlier waves. Growing trade deficits in durable goods have also increased wage inequality by reducing the relatively high wages of less-skilled workers in these industries and by displacing workers from them.

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