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Economics of Immigration - Essay Example

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Economics of Immigration Immigration forms part of one of the essential components of today’s world. The definition of immigration varies from country to country. For some countries, immigration also includes those people who do not have the nationality of that particular country (OECD, pp.28)…
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Download file to see previous pages However, the economic impact largely depends upon the skills of those immigrated (House of Lords, pp. 5). A question however arises. Why is there a large need for immigration? In many poor countries, the population grows at a faster pace than the creation of employment opportunities. The political instability, economic and social problems all propel certain people to immigrate, either legally or illegally, to developed countries. Mexico is one such country that has shown a large increase in immigration to countries such as the United Sates. Many of the Mexican workers in the United States have immigrated illegally, without any inspection or a Visa (Yoshida, pp. 2). The major relationship of migration occurs between the United States and Mexico. Around 9 million people, born in Mexico have now migrated to United States. This migration has largely created economic changes in Mexico and United States. Two major factors have resulted in the blooming of this relationship. The first is because of increased economic growth. Secondly, because of high inequality in Mexico and between Mexico and United States, the immigration has increased (Bush, McLarty, Alden, pp. 39). Immigration is largely because of economic factors and it further has economic impacts. The paper shall attempt to discuss the economic reasons of immigration into the United States from Mexico, what economic effects it has had on the U.S and Mexican economy. It also covers America’s policy, regarding immigration. As mentioned above, economic factors play a major role in an increase in immigration in the United States from Mexico. After the Second World War, there was a baby boom in both the United States and Mexico, but eventually in 1960, it reduced in US but continued to grow in Mexico. The Mexican economy did not create as many jobs as it should have for the working population; therefore, it resulted in immigration into the United States. Economists have concluded that around one third of immigration from US to Mexico in the past decades has occurred because of an increase in birth rates. (Bush, McLarty, Alden, pp.39). However, the baby boom does not remain the only economic factor, explaining immigration. The second largest reason for immigration into the United States is due to the weak Mexican economy. For the past decades, the Mexican economy has not created enough jobs; the minimum wage remains too low. Even though the Mexican economy grew in 1960s and 1970s, the 1982 debt crisis rocked the economy largely, resulting in emigration from Mexico in search for higher paid jobs. The trend towards higher immigration into the United States from Mexico has largely been followed by recessions or slumps in the Mexican economy (Bush, McLarty, Alden, pp.39). In fact, the economic factors play such an important role in the process of immigration in United States from Mexico that the major source of revenue in Mexico comes from remittances sent by Mexicans working in the United States (Drachman & Paulino, pp. 124). Although immigration to another country may occur because of political instability and religious reasons, in the case of Mexico, this immigration has largely occurred because of economic problems. Mexicans have gained economically because of this immigration into the United States. It increases the wage per hour of an average Mexican worker; therefore, increasing the standard of living. Moreover, the United States ...Download file to see next pagesRead More
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