Fully 60 or 70 percent of the new Soviet immigrants are in the labor force, compared to 48 percent of the Israeli public. Part of this huge difference is due to the age structure. But the immigrants also have a high job-seeking propensity, especially among women. In 1989, they were valedictorians in 13 of 17 Boston public high schools. And the children of immigrants earn more than average in all countries studied.
Immigrants increase the total size of the economy.
This increases productivity through economies of scale. That is, production tends to become cheaper and more efficient as the quantity produced grows larger, due to greater specialization of labor and of capital, and more efficient use of capital. Some public facilities such as transportation infra-structure can be used more efficiently with a larger population. Newcomers also increase flexibility, because they are unusually mobile both geographically and occupationally. This flexibility is ever more important as economies must change rapidly to stay in tune with changes worldwide.