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Immigrant Law of Labour Market - Essay Example

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The paper “Immigrant Law of Labour Market” will focus on advantages and disadvantages of immigrants on the labour market, depending on the skill the immigrants have and the skill that workers possess in the country. Skilled immigrants pose a considerable threat to the labour market…
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Immigrant Law of Labour Market
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Immigrant Law of Labour Market

Download file to see previous pages... On the contrary, skilled immigrants pose a considerable threat to the labour market, which ends up in several disadvantages for the host country. Skilled immigrants who can substitute the existing workers in the host country are disadvantageous because they will intensify competition in the labour market and resultantly lessen wages (Lucchino, Rosazza-Bondibene, and Portes). The effects of the decrease of wages will significantly be prejudiced by the level of skill of the immigrants. Although there may be an increase in productivity, an influx of skilful immigrants means that wages will decrease, while less skilled immigrants would not have a considerable effect on the economy. In consequence, an immigrant law is necessary to identify and delineate immigrant workers and their qualifications. The occupational and industrial structure of the labour market may transform owing to the change in the mix of goods and services manufactured in the economy. Labour demand suffers in either way, based on the abilities of the immigrants. Immigrants who are less skilled may force the labour market to adopt strategies that require low-skill labour, while employees that are more skilled will develop a technology-oriented approach in the labour market. Although this may have some rewards, a change in the economy is a risky process that may have negative repercussions on a country. The adoption of different production practices, for instance, labour-intensive or technology intensive determine the way that the labour market will counter economic growth. Although there may be minimal wage differences, it is common for low-waged workers to lose, while high-waged workers stand to gain from immigration (Dustmann, Frattini, and Preston). In essence, this means that the effects on average wages may not be evidently felt, but a section of the labour market that will be largely affected. ...Download file to see next pagesRead More
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