Is there any merit to the merit‐based immigration system? What Sub‐Saharan African immigrant labor and housing market outcomes tell us about U.S. economic and immigration systems

Abstract

For decades, U.S. immigration policy debates have centered on creating a merit‐based system limiting entry to high‐skilled immigrants. Yet the emphasis on merit‐based immigration ignores the fact that high‐skilled immigrants already enter the United States in merit‐based immigration assume high‐skilled immigrants benefit the U.S. economy because they are better able than low‐skilled immigrants to translate skills into economic success. Using Sub‐Saharan (Black) African immigrants' labor and housing market outcomes, I show that meritocracy only partially explains U.S. labor and housing outcomes, leaving a merit‐based system unlikely to address America's economic needs. The majority of immigrants to the U.S. are non‐White, and racial discrimination in the labor market results in occupational and wage disadvantages in the U.S. Due to the public charge rule, high skilled immigrants may be less likely to get their visas renewed or green card applications approved because of these labor market disadvantages. Without stable visa status, high‐skilled immigrants will be less likely to make long‐term economic investments in the United States—an important way of contributing to the U.S. economy. Together, research indicates that U.S. immigration reform will not work without first enacting policy addressing racial disparities in economic systems.

Country context, race and wages: A comparative analysis of Ethiopian immigrant labour market integration in the United States and Israel

“…Rather than implementing policies to increase skill selection, countries should instead focus on domestic policy such as this to address racial disparities in the labour market (Tesfai, 2021).…”

“…For example, names that are more common among Black populations are evaluated positively when employers are hiring for low‐skilled jobs, but negatively for high‐skilled employment (King et al, 2006). Rather than implementing policies to increase skill selection, countries should instead focus on domestic policy such as this to address racial disparities in the labour market (Tesfai, 2021).…”

“…Research outside of the United States also rarely examines the experience of Black African immigrants: European research generally focuses on Africans in the aggregate and therefore is heavily skewed towards the experience of North Africans who are the majority African group in these countries (de la Rica et al, 2013). Given the preponderance of evidence indicating that Black immigrants experience unique labour market disadvantages regardless of host country (Chehata, 2012; Creese & Wiebe, 2009; Hamilton et al, 2018; Tesfai, 2021), it is imperative that research examining the impact of country context includes Black African immigrants.…”