Mexicans and Unwanted Jobs
A piece of common wisdom often stated in relation to our current immigration issues, is that illegal immigrants are doing jobs that other Americans simply don't want to do. In a CBS News/New York Times poll in May 2006, 53% of respondents believe that illegal immigrants are, "mostly taking jobs that Americans don't want."
What these people fail to understand is the relationship between the jobs people want and the pay they receive. In other words, Americans don't want the jobs illegal immigrants are doing because the wages are terrible. How many Americans want to dig ditches in the hot Texas sun for $5.15 an hour? The supply of labor to any particular job depends largely on the compensation provided. How many Americans would dig ditches in the hot Texas sun for $100 an hour? People would be lining up.
If the supply of labor depends on the wage level, what are some factors that determine wages? Wages depend largely on the supply of labor for that job. Illegal immigrants raise the supply of labor for low-paying jobs and therefore depress wages. If there were fewer illegal immigrants, low-wage jobs would pay better and more Americans would want them.
To be fair, in an open economy with competitive foreign firms, there are some industries and occupations which only exist with low wages. However, the fact that the real wages of dish-washers and other low skill professions has fallen over the last 20 years (a job which is not open to international competition, like the proverbial barber in economics textbooks) suggests that the net effect of illegal immigration has been to depress the value of low-skill labor in the US.
Admittedly, technological advancement has made many jobs in the US obsolete, however, this does not detract from the fact that immigration aggravates the situation for low skill workers.
Corporate profits have never been better, but it's the little guy that suffers.
What these people fail to understand is the relationship between the jobs people want and the pay they receive. In other words, Americans don't want the jobs illegal immigrants are doing because the wages are terrible. How many Americans want to dig ditches in the hot Texas sun for $5.15 an hour? The supply of labor to any particular job depends largely on the compensation provided. How many Americans would dig ditches in the hot Texas sun for $100 an hour? People would be lining up.
If the supply of labor depends on the wage level, what are some factors that determine wages? Wages depend largely on the supply of labor for that job. Illegal immigrants raise the supply of labor for low-paying jobs and therefore depress wages. If there were fewer illegal immigrants, low-wage jobs would pay better and more Americans would want them.
To be fair, in an open economy with competitive foreign firms, there are some industries and occupations which only exist with low wages. However, the fact that the real wages of dish-washers and other low skill professions has fallen over the last 20 years (a job which is not open to international competition, like the proverbial barber in economics textbooks) suggests that the net effect of illegal immigration has been to depress the value of low-skill labor in the US.
Admittedly, technological advancement has made many jobs in the US obsolete, however, this does not detract from the fact that immigration aggravates the situation for low skill workers.
Corporate profits have never been better, but it's the little guy that suffers.
posted by PWN at 2:59 AM
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