Many low-income immigrants entered the United States over the past few decades.

Question

Many low-income immigrants entered the United States over the past few decades. Explain how the phenomenon of low-income immigration affects two of the most common measures of income distribution and equality: the share of income going to the top vs. bottom quintiles; and, the poverty rate. You may find it helpful to answer by thinking through a quantitative example, but this is not required. Based on your answers, explain how these types of statistics can be misleading when assessing the pros and cons of immigration.

Explanation / Answer

Income inequality in US have grown since 1965. As per the study in 2011, The top earning 1% individuals income grew by 275%,whereas there is just a growth of 40% income of the rest of the 60% individuals belonging to lower income group. As a result the incomeinequality has risen.

This has resulted due to the fact that many low-income immigrants entered the United States over the past few decades and is one of the major factors responsible for income inequality. The low incomeimmigrants have taken away the jobs of the low skilled workers in US , thus bringing much of income inequality.

It has also resulted in high poverty. Low income immigrants have reduced the per capita income in the US. Many of the low skilled US workers have lost their jobs, thus rising the unemployment level in the US. Thus the poverty has risen in US.

Inspite of contributing towards income inequality and poverty, immigration has its own pros and cons:

PROS

CONS

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