Textbook economics suggests immigration should lift productivity. After all, new immigrants open up trade opportunities; they diversify the engines of economic growth; they offer new and different perspectives on business; and they inherently take risks in hope of greater gains — a key ingredient of innovation.
Yet the results have been quite different. A recent study by the Organisation for Economic Cooperation and Development (OECD) found immigration has no impact on overall productivity. In Canada, it appears immigration is, in fact, working to reduce productivity given the chronic underemployment of immigrants in the country. According to some estimates, 20% of the increase in the U.S.-Canada productivity gap over the past decade can be attributed to immigration.
Source: Financial Post