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Economics of Immigration - Research Paper Example

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Introduction Economics of immigration is one of the most interesting subjects giving its overall complexity as well breadth of the overall impact it can have on the national and international economy. Over the period of time, complexity of the immigration and its economic impacts has increased thus giving rise to significant political and cultural issues…
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Economics of Immigration
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Download file to see previous pages One of the most important reasons as to why I chose this topic therefore is to understand the dynamics behind the economic impact of immigrants on the economy. The reason why I m choosing this topic is based on the assumption that the flow of qualified, skilled as well as unskilled labor actually contribute towards the economic progress of any country. The typical topic of my paper therefore is to assess the impact of Mexican immigrants on the economy of US. One of the major sources in this regard is the work done by Robert J Shapiro on the impact of immigration on the wages of the American workers. Though this work is not specific to Mexican immigrants however, it provides a general overview of the impact of immigration on the economy. Empirical and Theoretical Evidence There are many studies which have either supported the role of immigrants in any economy or rejected their impact on the economy. Shapiro’s study suggest that less than 57% immigrants come from Mexico or Latin American countries therefore making Europe and Asia are the major areas from where the recent immigrants are migrant towards America. (Shapiro). It is however, important to note that the major influx of immigrants in American came during 1881 and 1924 when more than 25 millions people immigrated to America for better future and new prospects. However, this flow was restricted after that period and due to changes in the immigration laws, the new flow of immigrants started to emerge after 1965. Since the last decade of 20th century and in the first decade of 21st Century, America is believed to have received more than 1 million immigrants mostly from Mexico and other Latin American countries. (Bodvarsson and Berg) The evidence of the economic earning of the immigrants in US showed somewhat erratic results as during 1970s’ an ordinary immigrant, on average, earned 1 % more than the native citizens however, this trend shifted during 1990s when natives were earning almost 15% higher than the immigrants. This decline in the wage rates and earnings of the individuals therefore also reignited the long debate as to whether the immigrants should be allowed to enter into the country. This was owing to the fact that lower wages demanded by immigrants also lowered the wages for the native citizens. (Borjas) Some studies suggest that the immigrants tend to cluster themselves in certain geographical locations and live in groups. It was estimated that during 1990, more than 70% of the population of the immigrants lived only in six different States of US. This concentration of immigrants therefore also gives rise to the unique interpretation of the fact that immigrants tend to concentrate themselves in regions with most prospects to get jobs or related work. Studies however, also show that due to this concentration, the overall impact of the immigrants on the wage rates for the native citizens is relatively small. Though there is a strong correlation between the wage rates of both however, this correlation is showing relatively small differentials in the wage rates of the immigrants as well as the native citizens. (Borjas, 2001) There are also two important perceptions about the immigrants and their impact on the economy. The firms or producers view ...Download file to see next pagesRead More
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