Immigration boosts innovation and wages in the US. The positive dynamic impact of immigration on innovation and wages dominates the short-run negative impact of increased labor supply. Increased immigration to the US since 1965 is estimated to have increased innovation and wages by 5%.

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What makes this particularly significant is Google's market position. Despite the rise of alternative AI search tools, Google still processes billions of searches daily and serves as the primary discovery mechanism for most internet users. When Google integrates AI-generated answers into its core search experience, it's not experimenting with a niche feature—it's fundamentally changing how the world's most popular search engine works.

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Chat GPT app icon is seen on a smartphone screen, on August 4, 2025.