Immigration Labor

Better Essays

Immigration and the U.S Labor Market Immigration is one of the most important issues that the United States faces and thus has misperceptions such as how immigration affects the workforce and economy, the size and composition of the immigrants, and the budgetary impact of unauthorized immigration. As of 2012, more than 40 million immigrants lived in the United States, the population accounting for about 13 percent of the total population of U.S. The same year showed that unauthorized immigrants were 11.7 million, accounting for 3.7 percent of all the people of the U.S and roughly 5.2 percent of the labor force. Most of the illegal immigrants are Latino who is primarily from Central America and Mexico. 46 percent of all the immigrants in the …show more content…

These effects include: wages return to the original level, the capital return falls, and the immigration surplus dissipates. This can be referred to as the long-run impact of immigration because the money answers with lag when there is unanticipated immigration. However, even if the immigrants arrive in the United States without capital, investment and domestic savings will rise due to the higher return on capital. When the capital-labor ratio returns to normal, the immigration surplus and adverse wage effect disappear. Predictions based on the assumption that the labor supply is elastic, whereby an immigrant or a native increase the amount of work they provide to the market. If some natives leave the labor force due to immigration, there would be not the wage effect, but also the employment impact of immigration (Blau and Mackie …show more content…

Empirical investigation is thus required for estimation of responses' magnitude to immigration by investors, employers, by earlier immigrants and native-born workers, and by the public sector, and also in consumer and housing goods markets. Using the U.S experience, immigrants have been represented in low-skilled occupations. However, a significant and growing share of immigrant is skilled in great manners. Due to the challenges of mechanisms shaping the economy, empirical literature has created some employment and wage impact estimates which experts debate about. One of the approaches used is spatial studies, which compares the outcome of workers across geographic areas. The second method used is the skill cell studies, which examines the results of employees across groups that are defined to have similar experience and education. The structural studies implement the approach of power cell with close connections between empirical estimation and theory (Blau and Mackie

Get Access