Several years ago, the Dallas Fed's annual report featured an essay entitled "The Churn." The churn is our term for what economist Joseph Schumpeter called "creative destruction." A dynamic economy like ours can grow and make room for the new only if we allow parts of the economy to shrink. Unprofitable firms and industries must be allowed to fail and go out of business so their workers and other resources can move into firms and industries whose products are more favored or needed by consumers. This is, as the essay's subtitle says, the paradox of progress.
Gone to Texas: immigration and the transformantion of the Texas economy
The United States welcomes more immigrants than any other country, and Texas welcomes more migrants?foreign and domestic?than any other state. Nearly half of all new arrivals to the state are foreign born. With a population of over 4 million immigrants, Texas is one of the top three states in terms of the number of foreign born living within its borders. Immigration to Texas has been both a cause and consequence of rapid regional growth. The strong economy and the Texas business model?low taxes, few regulations and a low cost of labor?have attracted many businesses and workers in recent ...
Regional Talent Pipelines: Collaborating with Industry to Build Opportunities in Texas
Over the past three decades, the share of middle-skill jobs has been shrinking in the U.S. economy. These are jobs that require workers to perform repetitive and procedural tasks, such as those performed by assembly line workers at a manufacturing company or typists at an accounting office. This form of job polarization has forced millions of American workers to make a choice: either get more education and workforce training to develop the skills and build the knowledge required for new middle- and high-skill occupations, settle for a lower-wage job in a low-skill service or manual labor ...
Digital Enforcement: Effects of E-Verify on Unauthorized Immigrant Employment and Population
E-Verify is a federal system that since 2003 has allowed employers across the country to digitally check eligibility documents provided by the workers they hire. The system is intended to deter the hiring of unauthorized immigrants. E-Verify mandates were in effect in 21 states as of December 2016. This report studies the effects of E-Verify in the seven states where E-Verify has been mandatory for all or almost all employers: Alabama, Arizona, Georgia, Mississippi, Utah, North Carolina and South Carolina. It assesses the impact of universal E-Verify mandates on the number of likely ...