Migrant Workers and Economic Development - Essay Example

Migrant workers and the economy Migrant workers offer their services in every sector of the economy. They work in mainstream companies, and earn an income similar to that earned by those born and raised in the United States. According to the Pew Hispanic Center, “more than a quarter of a million illegal immigrants are janitors, 350, 000 are maids and housekeepers and 300,000 are groundskeepers.” (Porter, 1). These numbers indicate that the workers contribute significantly to the development of the economy, and an economy without such workers would face critical problems. Consequent to this, the following discussion seeks to highlight that the economy needs migrant workers as they influence the economy in a positive way. Does the economy need migrant workers? Why? Provision of cheap labor The economy needs labor to facilitate the growth of the economy. Migrant workers provide such labor, and at times lower the cost of labor. Cheap labor lowers the cost associated with operating any business, thus allowing for an increase in the growth of the economy. This contributes to the competitiveness of the country’s economy, thus giving it the ability to compete successfully on a global scale. More to this, the low cost of labor benefits the consumers in the country as the prices of many goods and services remain low, thus making it easy to access their needs. Consequently, migrant workers help in lowering inflation costs in the host country (Henderson, 1). Provision of substitute labor Migrant workers also contribute to the growth of the economy by increasing the availability of labor in the economy. These workers strengthen the domestic labor force of the host country, which allows the economy of the country to expand. Many Americans do not enjoy working in low-wage industries. This follows the inadequacy of the wages to cater for their daily expenses, thus compelling them to look for better paying jobs. Consequent to this, migrant workers with low skills substitute these Americans as they work in such industries well. They accept the low wages as they help in meeting some of their needs. These include agriculture, food processing, as well as the building maintenance industries. Low skilled migrant workers provide the required workforce in these industries, thus contributing to the prosperity of the industries. Therefore, migrant workers promote a balance in the labor market as they work in the industries that most Americans choose to neglect. Migrant investments These workers invest in the economy of the country as they also start up their own businesses, which introduce new products to the economy, hence contributing to the growth of the economy. Payment of taxes The taxes paid by migrant workers add to the revenue of the government, and this enables the government to perform its activities in a better manner. The income, for example, assist the government in funding various essential services needed by the citizens, such as, medical expenses, as well as education needs for children. Enlargement of the market Migrant workers lead to an increase in the population of the host country. This means that they increase the demand for the goods and services offered in the market. Therefore, by being part of the consumers in the economy, they promote the growth of the economy as they enhance trading activities, which boost the growth of the economy. Impact of immigrant workers on the economy Immigration surplus Migrant workers increase the standard of living for the natives of the host country as they provide cheap labor that leads to lower costs of the commodities they need in life. According to Lowenstein, “societies with lots of immigrants tend, if anything to be more prosperous, not less.” More to this, he reports that states with more immigrants, such as, New York record higher wages compared to states with fewer immigrants, like, Mississipi (1). This indicates that the presence of migrants in America contributes to the advancement of the society. The low labor costs also increase the returns on capital. Therefore, the investors get good returns for the money they invest in the economy, thus boosting more investments. Greater investments result in expansion of businesses, thus providing more employment opportunities. Consequent to this, native workers get more employment opportunities, which boosts the overall growth of the economy. The expansions also provide a platform for higher wages, which boost the economic stability of the workers. Migrants also promote specialization of labor as a substantial percentage of the migrant workers with low skills work in industries that do not require high proficiency in English. On the other hand, skilled migrants, and educated natives work in industries that require them to be highly proficient in English, and other skills. Such specialization improves the efficiency of the industries, leading to greater economic growth of the country. Specialization also strengthens the bargaining power that workers possess, which means that the process leads to better wages for the skilled natives, as well as skilled migrant workers. Skilled workers, who could be migrant workers, also lend their talents to technological innovation, leading to job creation at the various organizational levels. Consequently, they contribute to the advancement of the economy as they use their creativity to expand existing job opportunities. On balance, is it positive or negative? This discussion shows that migrant workers contribute positively to the economy. They play a crucial role in advancing the economy, hence making them an important aspect of the economy. Conclusion Conclusively, migrant workers can be found in all sectors of the economy. Some are illegal, while others work in the country legally. However, they contribute positively to the advancement of the economy in a number of ways. They, for example, pay taxes, which increase the revenue of the government. In addition, they provide cheap labor, which increases the returns of investors. Additionally, the cheap labor leads to lower prices of commodities, thus improving the standards of living. More to this, migrant labor leads to greater specialization and division of labor, which promotes efficiency in the economy. These show that they play a central role in economic growth, thus stressing their significance. Works Cited Henderson, Nell. Effect of Immigration on Jobs, Wages is Difficult for Economists to Nail Down. The Washington Post, 2006. Web < http://www.washingtonpost.com/wp-dyn/content/article/2006/04/14/AR2006041401686.html> Lowenstein, Roger. The Immigration Equation. The New York Times, 2006. Web < http://www.nytimes.com/2006/07/09/magazine/09IMM.html?pagewanted=all> Porter, Eduardo. Here Illegally, Working Hard and Paying Taxes. The New York Times, 2006. Web< http://www.nytimes.com/2006/06/19/business/19illegals.html?pagewanted=all&_r=0> Read More