Effects of Immigration: Difference between revisions
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Immigration directly affects the supply of low skilled labor through the influx of people both legally and illegally from low income areas like Mexico. The presence of these immigrants affects both the supply and demand for both skilled and unskilled labor. While developments in technology raise demand for high-skilled laborers, the demand for low skilled workers dramatically falls with increased immigration from low wage developing countries driving up the supply of low skilled workers (Krugman 2). These workers are willing to work for lower wages than most American-born workers, thus driving down the wages of Americans in the bottom income bracket. | Immigration directly affects the supply of low skilled labor through the influx of people both legally and illegally from low income areas like Mexico. The presence of these immigrants affects both the supply and demand for both skilled and unskilled labor. While developments in technology raise demand for high-skilled laborers, the demand for low skilled workers dramatically falls with increased immigration from low wage developing countries driving up the supply of low skilled workers (Krugman 2). These workers are willing to work for lower wages than most American-born workers, thus driving down the wages of Americans in the bottom income bracket. | ||
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All immigration is not detrimental to the US economy. Unfortunately, it is mostly only high-skilled immigrants such as engineers and software technicians that are very economically valuable. It has become clear that technological developments in the last 50 years have best served the interests of more highly skilled laborers. | All immigration is not detrimental to the US economy. Unfortunately, it is mostly only high-skilled immigrants such as engineers and software technicians that are very economically valuable. It has become clear that technological developments in the last 50 years have best served the interests of more highly skilled laborers. | ||
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Latest revision as of 23:40, 27 April 2006
Immigration directly affects the supply of low skilled labor through the influx of people both legally and illegally from low income areas like Mexico. The presence of these immigrants affects both the supply and demand for both skilled and unskilled labor. While developments in technology raise demand for high-skilled laborers, the demand for low skilled workers dramatically falls with increased immigration from low wage developing countries driving up the supply of low skilled workers (Krugman 2). These workers are willing to work for lower wages than most American-born workers, thus driving down the wages of Americans in the bottom income bracket.
This fall in the wages for unskilled labor is extremely significant. Krugman estimates that without the influx of Mexican immigrants to the United States, the average yearly earnings for high school dropouts would be 8% higher.
Another negative effect such a large flow of low skilled workers has had on the economy is the negative return the economy gets from these workers. If the workers are paying taxes, in many cases this does not cover the costs of offering the workers education and other social services (Krugman 2). Krugman highlights a disturbing statistic that the entire net benefit to the American economy from immigration since 1980 is only a fraction of one percent.
All immigration is not detrimental to the US economy. Unfortunately, it is mostly only high-skilled immigrants such as engineers and software technicians that are very economically valuable. It has become clear that technological developments in the last 50 years have best served the interests of more highly skilled laborers.
