George J. Borjas, Richard B. Freeman, and Lawrence F. Katz examine the impact of immigration and trade on U.S. labor market outcomes. Since the 1960s, immigration and trade have increased significantly, with more immigrants coming from less developed countries and a larger share of imports from these countries. These changes have increased the effective labor supply of less skilled workers, potentially affecting wages and employment. The authors analyze how immigration and trade affect the economic outcomes of less skilled and low-paid American workers and how they benefit other Americans. They note that while trade and immigration both increase the implicit supply of labor, their distributional effects are linked. Empirical evidence suggests that trade has small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if displaced industries use similar technologies. Immigration has had a marked adverse impact on the economic status of the least skilled U.S. workers, particularly high school dropouts and those in the bottom 20 percent of the wage distribution. Trade has had small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if one assumes that economic activities displaced by imports employ technologies comparable to the least skilled plants in U.S. manufacturing industries. The authors find that immigration does not have a consistent effect on area economic outcomes, as other regional factors dominate. The native population's location decisions respond to immigration, with a significant reduction in the flow of natives to California since 1970. Immigration has had a marked adverse impact on the economic status of the least skilled U.S. workers. Trade has had small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if one assumes that economic activities displaced by imports employ technologies comparable to the least skilled plants in U.S. manufacturing industries. The authors also find that the geographic concentration of immigrants has increased over time, with a significant portion living in a small number of states. The skill distribution of immigrants is more dispersed than that of natives, with a disproportionately high number having fewer than nine years of schooling. This has led to an increasing concentration of immigrant labor in lower educational categories. The authors also examine the impact of trade on labor market outcomes, finding that trade has small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if one assumes that economic activities displaced by imports employ technologies comparable to the least skilled plants in U.S. manufacturing industries. The authors conclude that immigration and trade have complex effects on the U.S. labor market, with immigration having a more significant impact on the economic status of less skilled workers.George J. Borjas, Richard B. Freeman, and Lawrence F. Katz examine the impact of immigration and trade on U.S. labor market outcomes. Since the 1960s, immigration and trade have increased significantly, with more immigrants coming from less developed countries and a larger share of imports from these countries. These changes have increased the effective labor supply of less skilled workers, potentially affecting wages and employment. The authors analyze how immigration and trade affect the economic outcomes of less skilled and low-paid American workers and how they benefit other Americans. They note that while trade and immigration both increase the implicit supply of labor, their distributional effects are linked. Empirical evidence suggests that trade has small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if displaced industries use similar technologies. Immigration has had a marked adverse impact on the economic status of the least skilled U.S. workers, particularly high school dropouts and those in the bottom 20 percent of the wage distribution. Trade has had small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if one assumes that economic activities displaced by imports employ technologies comparable to the least skilled plants in U.S. manufacturing industries. The authors find that immigration does not have a consistent effect on area economic outcomes, as other regional factors dominate. The native population's location decisions respond to immigration, with a significant reduction in the flow of natives to California since 1970. Immigration has had a marked adverse impact on the economic status of the least skilled U.S. workers. Trade has had small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if one assumes that economic activities displaced by imports employ technologies comparable to the least skilled plants in U.S. manufacturing industries. The authors also find that the geographic concentration of immigrants has increased over time, with a significant portion living in a small number of states. The skill distribution of immigrants is more dispersed than that of natives, with a disproportionately high number having fewer than nine years of schooling. This has led to an increasing concentration of immigrant labor in lower educational categories. The authors also examine the impact of trade on labor market outcomes, finding that trade has small effects on the overall implicit labor supply of less skilled workers, but the effect is larger if one assumes that economic activities displaced by imports employ technologies comparable to the least skilled plants in U.S. manufacturing industries. The authors conclude that immigration and trade have complex effects on the U.S. labor market, with immigration having a more significant impact on the economic status of less skilled workers.