The skill levels of immigrants entering the USA has declined in recent deca
des; however, most immigrants to the USA continue to be admitted on the bas
is of family contacts, without reference to labour-market characteristics.
This situation has given rise to a debate about the criteria on which immig
rants are admitted or excluded. I examine how the relative skill levels of
immigrants admitted under different criteria vary by country of origin, tho
se criteria being the possession of highly-valued skills and family connect
ions. Using data from the Immigration and Naturalization Service, Borjas' 1
987 model is tested. The results show (a) that the relative skill levels of
the two groups do indeed differ by country of origin, and (b) the pattern
by country of origin is consistent with the Borjas predictions. The policy
implication is that the effects of changing admission criteria will differ
by country of origin, but in a predictable way.