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Immigrants help fuel the U.S. economy, representing about one in every six workers. Because of accelerated immigration and slowing U.S. population growth, foreign-born workers accounted for almost half of labor force growth over the past 15 years. Public attention has focused mainly on the large number of low-skilled immigrant workers, but the number of high-skilled immigrants actually grew faster during the period. Highly educated immigrants filled critical jobs in the science, engineering, information technology and health care sectors as well as fostered innovation and created high-tech businesses.

In the debate over immigration reform, it is frequently asserted that immigrants take jobs that U.S. natives do not want. Using data from the 2000 Census merged with O*NET data on occupation characteristics, I show that the jobs held by immigrants are more physically arduous than the jobs held by U.S. natives. However, data from the California Work and Health Survey on self-reported physical job demands indicate that immigrants do not perceive their jobs as requiring more physical effort than U.S. natives. Immigrants thus have worse jobs than natives but do not view them as such.

The authors examine racial and ethnic differences in computer ownership and Internet usage using data from a survey conducted by the Nomura Research Institute in 2000. They focus on on-line shopping because few studies have examined racial and ethnic differences in e-commerce. The results indicate that blacks and Hispanics are less likely to own or use a computer than are non-Hispanic whites but are not less likely to shop on-line. Indeed, blacks appear to shop on-line more frequently and to spend more than non-Hispanic whites do.

Immigration reform is once again on Washington's policy agenda. Serious attention is being given to policies that would place more emphasis on merit than on family ties, which are favored by much of the current US immigration system. One way to determine merit is a point-based system. This paper argues that auctioning off visas would be preferable to a point-based system. Auctions would promote economic growth, increase government revenue, and lead to a more efficient allocation of visas while reducing discretionary decision making by government officials. This paper outlines several proposals for how to implement visa auctions that could serve as a starting point for designing a better immigration policy. We recommend replacing the current system of employment-based temporary and permanent visas with an employer-centered auction in order to increase the economic gains from immigration.