We document a steady decline in low-skilled immigration that began with the onset of the Great Recession in 2007, which … estimate a stochastic growth model with endogenous immigration and training to account for these facts and study macroeconomic … performance and welfare. Lower immigration leads to higher wages for low-skilled workers and higher consumer prices. Importantly …

The paper answers two questions simultaneously. What is the effect of offshoring on firms' total factor productivity …? What is the effect of offshoring on skill-biased technological change? We estimate a model of firm production that allows … for the effect of offshoring on both total factor productivity and relative skilled labor productivity, and for spillovers …

demand and technology, production expansion, and specialization of native workers as immigration rises. …