8 Evidence-grounded Insights on Immigration and Business
In June 2024, Wharton Global Youth welcomed Wharton’s Exequiel “Zeke” Hernandez to our cross-program lecture series for high school students studying with us on campus.
Dr. Hernandez joined us a week after the publication of his first book, The Truth About Immigration: Why Successful Societies Welcome Newcomers. The linkage between immigration and economic growth has crucial implications for immigration policy, and Professor Hernandez’s research, gathered in the past 20 years, suggests that immigrants are essential for economically prosperous and socially vibrant nations.
Below are eight highlights from Professor Hernandez’s conversation with Wharton Global Youth on the immigrant economy:
1️⃣ Few topics are more controversial than immigration. In the U.S., as well as just about every other country, debate rages about whether immigrants are good or bad for us. And every country around the world with a growing economy is attracting a lot of immigrants.
2️⃣ People believe two stories about immigrants: they are villains because they steal our jobs, undermine our culture and create safety problems. And, immigrants are victims: the poor, huddled masses who need our help. “When you look at data, when you look at hard evidence, it tells us that immigrants are neither villains nor victims,” noted Dr. Hernandez. “Instead, we can be factually optimistic.”
3️⃣ Immigrants bring investment, talent, innovation, jobs, and pay taxes, which helps keep the economy vibrant.
4️⃣ Pollo Campero is a case study in how the largest fast food chain in Guatemala made an investment in the U.S., opening its first restaurant in Los Angeles in 2002. The company recently opened its 100th U.S. restaurant in Miami, Florida.
5️⃣ Immigrant-driven investments and businesses create thousands of jobs, many of which go to native-born Americans, not just immigrants. “By a very conservative estimate, Pollo Campero has created more than 5,000 jobs,” noted Hernandez. “That’s a conservative estimate because we’re not counting the indirect jobs it supports for its suppliers and distributors. Most of the direct jobs don’t go to immigrants. They go to native people. These investments are very important for communities to stay alive.”
6️⃣ More than 50% of people with PhDs in artificial intelligence in the U.S. are foreign-born, underscoring the critical role of immigrant talent in driving innovation.
7️⃣ Immigrant-founded companies like Zoom and OpenAI have made important contributions to the tech industry. “If we look at OpenAI, which is the creator of ChatGPT, the chief technology officer is Mira Murati, an Albanian engineer,” added Dr. Hernandez.
8️⃣ Immigrants are 80% more likely than natives to start businesses. They account for a quarter of all businesses and a half of all businesses that reach unicorn status, which means it has a valuation of $1 billion or more. “Countries get new ideas and new innovations because of immigrants,” noted Dr. Hernandez.
What does immigration have to do with business? “If you’re going to run a business and you need talent, much of the talent you’re going to need is foreign-born,” said Professor Hernandez. “It’s not just the quantity of talent and ideas, but the variety of talent and ideas” that adds value to the economy.
Conversation Starters
Professor Zeke Hernandez talks often about the need for hard evidence in the conversation around the immigrant economy. Why do you think this is important? What are some examples of his research that help contribute data to the discussion?
What questions would you like to ask Dr. Hernandez about the immigrant economy? Drop them in the comment section of this article.
Dr. Hernandez says that countries get new ideas and innovations because of immigrants. Do you agree with this statement? Why or why not? What other insights in this article made you think differently about the immigrant economy?