Indeed, These Results Are Coherent With The Works Of Major

1079 WordsMar 21, 20175 Pages
Indeed, these results are coherent with the works of major contemporary immigrant economists. One of the most renown professor specialized in the field, Borjas, concluded in 2001 that immigration, especially low-skill, only decreases the wage elasticity (percent change in hours working over percent change in salary) of the natives to about -.3% to -.4% (41 Kerr). Similarly, Altonji and Card estimated a negligible negative effect on total employment about 0.1% by 1989 (43 Kerr). There are several academic explanations for the small effect of immigration to the United States. Daniel Chiquiar and Gordon H. Hanson, for example, observed that the major flow of immigration from Mexico, though still somewhat considered “unskilled” in US, rather…show more content…
Instead of immigrants, the neoliberal structure of the US economy is the main culprit of the current employment tensions and low-skilled labor supply surplus. Neoliberalism refers to the ideological practices and political-economic structures that serve the corporate instead of public interest (23 Harvey). Specifically, it advocates steps of privatization, financialization, the management and manipulation of crisis, and state redistributions benefit the corporate power. Nevertheless, different from the traditional capitalism defined by either Adam Smith or Keynes, it emphasizes more on the systematic involvement of the government to support their local and oversea interests (Harvey). In result, it possesses a strange but unique phenomenon not predicted by many scholars—the inability to upgrade the labor to meet the demand of supply. Neoliberalism promotes the large outflow of capital oversea, especially those that are best characterized by labor-intensive industries. These industries usually require minimal amount of training and generate mass employment. On the other hand, the high-ended technological and innovative capital, best characterized by capital-intensive industries, remained domestic. These industries often demand a great amount of skill and training, whose cost are very high, but provide only limited employment. In these cases,
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