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Economic of Immigration - Research Paper Example

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Due to the adverse effects of immigration like depression of wages for low skilled workers and imposition of strains on economies there have been limitations to the number of immigrants allowed to cross boarders. This paper will examine economic of immigration in respect to United States and Mexico. …
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Economic of Immigration
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Download file to see previous pages From the study it is clear that acquisition of technical knowledge imparts the adequate skills to the masses in the USA while low level of education and hence lack of high-end skills for immigrants from Mexico enables Americans to keep top level jobs. Implementation of different trade policies and immigration programs between the US and the Mexican government led to greater influx of immigrants into the USA.
According to the paper findings the economics of immigration in Mexico is of interest because Mexico borders an economic superpower-USA. This it means that immigrants from Mexico affect many different sectors of a world class economy. Immigration has social, demographic, economic effects some of which are good while others detrimental. Most legal immigrants are not subject to a great deal of public scrutiny and suspicion because of the belief that they are rightfully there while the illegal ones are subject to both police and public scrutiny because of the belief that they affect the economy and society negatively. In order to enhance economic welfare the US government tries to reduce the number of illegal immigrants from Mexico by converting them to legal immigrants or by not allowing them near the border. In Mexico the immigration policy requires that immigration of individuals with skills that are limited in supply and those whose tax contributions and net cost of public services received are large should be well monitored. It implies that those who contribute positively to economic growth are the ones who should be granted the legal admission. Also admission of immigrants in limited occupations leads to increased aggregate income as a result of high labor demand and mobility across borders e.g. for international trade. Cortes (2005) states that continuing high levels of immigration weaken the enforcement of labor market regulations by the USA as a result of the influx of Mexican immigrants. This is because the inflows of aliens relax the commitment of employers in USA and create a population of workers who are not adequately equipped with the necessary skills. This is as a result of lower education levels thereby earning less as compared to the highly educated and well paid Americans resulting into lower tax payments and thus increased poverty levels. The Mexican Immigrants Act offers subsidy to those businesses that employ lowly skilled workers since they contribute a small portion of the aggregate income. Wayne (2001) states that illegal immigrants have ...Download file to see next pagesRead More
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