Question

This is Econ 310. Book: International economics robert carbaugh 16th.

Does migration lower the wages of American workers? CHS. 2 & 9.

Answer 1

Migration of people in the USA, increases the supply of labor force in the country that puts downward pressure upon the wages in the short run. So, in the short run the wages will come down with an increase in the supply of the labor force in the country.
In the long run, these migrants will create additional demand that will cause the firms to build new capacities and produce more. It will create new employment opportunities as an important factor of production. Now, demand for labors will increase in the long run and wages will come back to the original level or increase from the existing level. So, in the long run, the wages will be pulled back to the original level or improve depending upon the size of the increase in aggregate demand due to the migrants.