2. Review the following website (http://www.newsweek.com/do-immigrants-drive-dow

Question

2. Review the following website (http://www.newsweek.com/do-immigrants-drive-down-wages-310100 ) for information on the impact of immigration on wages in affected areas of the US. Once you review this research, develop responses for the following questions:

a. Explain with narrative why the wages for US workers in the area would likely fall.

b. What is the author’s rationale for indicating that over the long haul the demand for workers may actually increase?

c. Do you agree with the author’s rationale that economic growth will benefit the overall well being of the economy with higher levels of “legal” immigration in the country?

Explanation / Answer

2.
A.
Wages would likely fall as more number of workers (including the immigrant workers) will be competing for the same number of jobs when immigration takes place in the economy. Due to the higher number of job applications for the fewer jobs, there is a shift of the bargaining power to the employers and they can opt for the employees who demand lower wages with the same skill sets. Though, the impact of the immigration upon the wages are more pronounced in the short run than the long run.
B.
The author gives attention to the fact that the immigrant workers will also consume goods and services. It means that the additional demand is created by these immigrant workers. To cater the additional demand, additional supply is required and it will demand more number of workers to produce the supply. So, new job opportunities will be created and it will also push the wage to the higher side.
C.
Yes, I agree with the claims made by the author due to the following reasons:
1.   The legal immigrants bring skills and technology also that help the economy to improve
2.   The additional demand is created that expands the economy and new employment opportunities are created.
3.   Though, in the short run wages come down, but in the long run it has the possibility to increase
4.   The workforce becomes more competitive

Above benefits increase the efficiency level of the economy and contributes to the higher level of growth and well-being of the economy.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.