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Wharton School Analysis Finds Problems With Immigration Proposal

PHILADELPHIA (CBS) -- A new proposal on immigration would have the opposite effect of what's intended, according to research by Penn's Wharton School.

Its analysis finds the proposal's cuts to legal immigration would hurt the U.S. economy in the long run.

The proposal has been dubbed RAISE, for Reforming American Immigration for Strong Employment, but Kim Burham of the Penn Wharton Budget Model says it will actually reduce the number of jobs in the economy.

"In 2027, there will be 1.3 million fewer jobs and by 2040, 4.6 million fewer jobs," she said.

Burham explains the bill would cut legal immigration by 50%, which means falling population and thus falling national productivity.

"Some of the current population, which includes current immigrants who are living here, will work more but, in the long run, they don't work enough more to make up for the lost immigrant labor," Burham said.

The Model has been analyzing immigration scenarios since last year, testing the impact of various proposals.

Burham says it found increasing legal immigration, and increasing the percentage of skilled and educated immigrants, is best for the economy.

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