Question

Please discuss the following. Be sure to thoroughly address the questions/comment and provide a detailed explanation....

Please discuss the following. Be sure to thoroughly address the questions/comment and provide a detailed explanation.

5. How would you respond to the notion that "immigrants flood the labor market and drive down wages in the U.S." Do you agree or disagree with this statement? Why? Be sure to provide examples and explain your reasoning.

Homework Answers

Answer #1

Yes I do agree . When there is increase in immigrants then there is excess supply of labor in the market . It depends on the skill level of the immigrants the sector in which wage will go down . Suppose maximum immigrants are unskilled laborers . Then in the unskilled labor market , due to excess supply of labor wages go down . Firms can easily hire even if they pay lower wages . But it may have some positive effects like diversity in skills available . Throughout history we have seen that major enterprises in US are set up by immigrants also . So immigration might be the reason for ecnomic development in long run .

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