Tuesday, September 28, 2010

How can an increase in immigration raise wages?

I know we just went through the labor market where we discussed the factors affecting labor supply. The main factors were the birth rates, baby boomer generation, woman entering the labor force, and retirement age. I didn't go into a lot of detail about immigration. This is primary because illegal immigrant do not affect the labor supply in the United States. They are taking jobs American do not want to work. This is evident by the United Farm Workers campaign, "Take Our Jobs". They have opened up 700,000 jobs current occupied by immigrants. Only 16 people have applied for these positions (including Stephen Colbert). Here is nice piece by Ezra Klein.

So how can more immigration increase the wages of low skilled American workers?

1 comment:

  1. I always consider these rates to be too low, I believe it’s far better that we do our own work. I do Forex trading and I consider this business very highly. I am able to work out smoothly because of OctaFX broker and their wide range of features and facilities available. I operate on with their ECN account and it can be done with as low as 5 dollars and I never have to worry about any sort of manipulation or slippage, it just keeps me entirely relaxed at work.

    ReplyDelete