Immigration boosts innovation and wages in the US. The positive dynamic impact of immigration on innovation and wages dominates the short-run negative impact of increased labor supply. Increased immigration to the US since 1965 is estimated to have increased innovation and wages by 5%.

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That is not only a sadness and a loss, but becoming an aged society is a cultural and economic threat. Older people, by and large, are not the innovators or new thinkers. An ageing society risks declining in optimism, creativity and, above all, risk-taking: a top-heavy preponderance of older people makes for a conservative and fearful electorate. We are there already – and it’s getting worse.

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Authors:Ryan Gibb, Patrick Ferris, David Allsopp, Thomas Gazagnaire, Anil Madhavapeddy

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