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Discussion Thread: Immigration
Eric Castro
School of Behavioral Sciences, Liberty University
BUSI 620: Global Economic Environment
Immigration
The claim that immigrants flood the labor market and lower wages is a hotly disputed
topic in both economic and social circles. A closer examination of scientific data and biblical
principles reveals that this claim is not only unsubstantiated by strong evidence, but also ignores
the complexity of labor market dynamics. In reality, both evidence and moral principles indicate
that immigration benefits economic progress and society as a whole.
Economic Insights on Immigration's Impact
Recent economic studies suggest that immigration has little effect on wages for
nativeborn workers, and any pay decreases are often limited to select low-skilled industries
where immigrants and locals compete directly. For example, Peri and Yasenov (2019) discovered
that immigration did not significantly lower wages across the broader workforce because
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immigrants frequently complement rather than compete with native workers by addressing
labor shortages in industries such as agriculture, healthcare, and technology. Similarly, Clemens
and Hunt (2019) contend that immigrants stimulate economic growth by raising consumer
demand and offering new employment possibilities.
Stapleford (2015) supports these findings by pointing out that immigration haven't
lowered wages or negatively impacted the level of living for locals over time. According to
Managerial Economics and Business Strategy, the equilibrium wage theory emphasizes how
markets adapt to changes in the labor supply. In actuality, the employment of immigrants
frequently boosts creativity and productivity, improving the state of the economy as a whole
(Baye & Prince, 2022).
A Biblical Perspective
Scripture provides unambiguous instructions on how to treat immigrants fairly and with
respect. Treating foreigners fairly is mandated by Deuteronomy 10:18-19 (NIV), which advocates
for acceptance and love rather than exclusion or blame. This idea encourages Christians to see
immigrants with compassion, viewing them as valuable members of society rather than as
threats. A position like this is consistent with biblical stewardship, which holds that God's
kingdom values are reflected in the maximization of resources, including human capital.
Practical Implications
Wage suppression worries are frequently based on myths about the economy rather
than facts. Policies that support immigrants' integration into the workforce can benefit all
parties economically, according to evidence from Dicarlo (2022). For instance, immigrant
business owners frequently boost local economies and provide jobs, counteracting possible
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disruptions in the labor market. Additionally, the United States improves its competitiveness in
the global economy by using immigrant labor to fill skills gaps.
Conclusion
In addition to lacking strong empirical backing, the argument that immigrants oversupply
the labor market and drive down wages runs counter to biblical values of hospitality and
equality. Accepting immigrants as partners rather than rivals promotes a mutually beneficial
culture and is consistent with economic reality. As Christians, we should respond in a way that
exemplifies compassion and wisdom, making sure that laws are based on both heavenly
principles and practical wisdom.
References
Baye, M. R., & Prince, J. (2022). Managerial Economics and Business Strategy (10th ed.). New
York, NY: Richard D. Irwin, Inc.
Clemens, M. A., & Hunt, J. (2019). The labor market effects of refugee waves: Reconciling
conflicting results. Industrial and Labor Relations Review, 72(4), 818–857.
https://doi.org/10.1177/0019793918824597
Deuteronomy 10:18-19 (NIV). (n.d.). Bible Gateway. https://www.biblegateway.com/passage/?
search=Deuteronomy%2010%3A18-19&version=NIV
Dicarlo, E. (2022). How Do Firms Adjust to Negative Labor Supply Shocks? Evidence from
Migration Outflows. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4114518
Peri, G., & Yasenov, V. (2019). The labor market effects of a refugee wave: Applying the synthetic
control method. Journal of Human Resources, 54(2), 267–309.
https://doi.org/10.3368/jhr.54.2.0217.8561r1
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Stapleford, J. (2015). Bulls, Bears, and Golden Calves. IVP Academic.
Response #1 Brian
Your analysis presents a strong case that debunks the myth that immigrants are a threat
to labor markets. Your use of economic research, historical viewpoints, and ethical
considerations is really successful. I'd want to build on your remarks and present additional
evidence proving immigrants' contributions to both the economy and society.
Immigrants' contributions to the American economy are frequently undervalued. As you
mentioned, immigrants usually play important roles in fields like healthcare and agriculture.
Recent research supports this viewpoint. Monras (2019) observes that, while immigration may
initially result in localized wage adjustments in specific industries, it frequently leads to
increased efficiency and growth across the economy. Immigrants not only fill labor shortages,
but they also promote innovation and entrepreneurship. According to Kerr and Kerr (2020),
immigrant-founded companies in the United States account for a disproportionate percentage
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of patents and technological developments, which contribute significantly to worldwide
competitiveness.
Furthermore, the notion of compensating differentials in Managerial Economics and
Business Strategy illustrates that wage variations in certain industries do not always result in
harm to native workers. Instead, they reflect changes in labor allocation as markets respond to
supply and demand fluctuations (Baye & Prince, 2022). These modifications demonstrate the
labor market's durability and adaptability, which is boosted by immigrant contributions.
Leviticus 19:33-34 gives a solid framework for advocating for justice and compassion for
immigrants. Deuteronomy 10:18-19 expands on this by reminding us that God defends the
rights of foreigners, asking us to love and care for them as part of a larger divine obligation. This
moral imperative opposes the inclination to perceive immigrants as competitors, instead asking
us to see them as valuable members of the human community.
While there is widespread fear that immigrants are pushing down wages, it is critical to
contextualize this claim. Clemens and Hunt (2019) discovered that wage suppression caused by
immigration is primarily focused in a few low-skilled sectors and is transient. Over time, the
influx of immigrant workers increases productivity and creates opportunities for native-born
employees. Furthermore, politicians can offset possible localized effects through education,
training programs, and fair labor rules that enable native-born workers to advance to
higherskilled positions.
References
Baye, M. R., & Prince, J. (2022). Managerial Economics and Business Strategy (10th ed.). New
York, NY: Richard D. Irwin, Inc.
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Clemens, M. A., & Hunt, J. (2019). The labor market effects of refugee waves: Reconciling
conflicting results. Industrial and Labor Relations Review, 72(4), 818–857.
https://doi.org/10.1177/0019793918824597
Deuteronomy 10:18-19 (NIV). (n.d.). Bible Gateway. https://www.biblegateway.com/passage/?
search=Deuteronomy%2010%3A18-19&version=NIV
Kerr, S. P., & Kerr, W. R. (2020). Immigrant entrepreneurship in America: Evidence from the
Survey of Business Owners 2007 & 2012. Research Policy, 49(3), 103918.
https://doi.org/10.1016/j.respol.2019.103918
Monras, J. (2019). Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis.
Journal of Political Economy, 128(8), 3017–3089. https://doi.org/10.1086/707764
Response #2 Diana
Diana,
Your informative piece offers a comprehensive perspective on the complex issue of
immigration, emphasizing its many economic and moral ramifications. I like your distinction
between legal and illegal immigration, as well as your use of religious analogies to emphasize
the moral imperative to treat immigrants with compassion and dignity. Allow me to build on
your remarks by providing additional analysis and insights.
Your argument on how lawful immigration contributes to economic progress is
wellsupported. Research demonstrates that immigrants, whether low- or high-skilled,
frequently complement rather than compete with the native labor. For example, Peri and
Yasenov (2019) discovered that immigrants boost productivity and job growth by filling essential
labor shortages in industries like construction, agriculture, and healthcare. This adds to your
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point about increased consumption; because immigrants contribute through taxes and
economic activity, they reduce fiscal pressures on native-born citizens.
Additionally, the textbook introduces the notion of derived demand, which is relevant
here (Baye & Prince, 2022). As immigrant workers fill labor shortages, they increase demand for
complementary goods and services, so stimulating total economic growth. This interwoven
dynamic demonstrates how immigration boosts productivity and provides long-term benefits to
society.
Your argument about immigrants' modest impact on wages is consistent with recent
data. According to Clemens and Hunt (2019), while localized pay adjustments may occur
momentarily in industries with significant concentrations of immigrant labor, their overall
impact on native workers' salaries is small. Over time, immigrants' contributions to productivity
and innovation outweigh these drawbacks, resulting in a stronger economy and better
prospects for all.
Illegal immigration, as you mentioned, complicates labor circumstances. Employers who
abuse illegal immigrants can cut labor costs, but tackling this issue requires sensible policies
that combine enforcement with avenues to legalization. Legalizing undocumented workers may
lessen wage gaps while ensuring fair treatment and larger economic contributions (Monras,
2022).
Your biblical examples beautifully demonstrate the ethical dimension of immigration.
Following your reference to Genesis 12:1, another moving verse is Matthew 25:35, where Jesus
states, "I was a stranger, and you welcomed me." This instruction exhorts believers to
demonstrate compassion and care for immigrants as a demonstration of God's love. These
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teachings push us to treat immigration with hospitality and justice, acknowledging each
person's inherent dignity and potential.
References
Baye, M. R., & Prince, J. (2022). Managerial Economics and Business Strategy (10th ed.). New
York, NY: Richard D. Irwin, Inc.
Clemens, M. A., & Hunt, J. (2019). The labor market effects of refugee waves: Reconciling
conflicting results. Industrial and Labor Relations Review, 72(4), 818–857.
https://doi.org/10.1177/0019793918824597
Matthew 25:35 (NIV). (n.d.). Bible Gateway. https://www.biblegateway.com/passage/?
search=Matthew%2025%3A35&version=NIV
Monras, J. (2019). Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis.
Journal of Political Economy, 128(8), 3017–3089. https://doi.org/10.1086/707764
Peri, G., & Yasenov, V. (2019). The labor market effects of a refugee wave: Applying the synthetic
control method. Journal of Human Resources, 54(2), 267–309.
https://doi.org/10.3368/jhr.54.2.0217.8561r1
Write a graduate-level discussion post:
Must meet the following requirements:
1. All key components of questions are answered.
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2. Major points are supported by the following: reading & study materials; good examples;
thoughtful analysis; and properly formatted citation.
3. provide 4 citations and sources within the last five years. Must use the textbook as the fifth
citation (Baye, M. R., & Prince, J. (2022). Managerial Economics and Business Strategy (10th
ed.). New York, NY: Richard D. Irwin, Inc.)
Write a graduate-level discussion response to Stefan:
Must meet the following requirements:
1. All key components of questions are answered.
2. Major points are supported by the following: reading & study materials; good examples;
thoughtful analysis; and properly formatted citation.
3. provide 4 citations and sources within last five years. Must use the textbook as the fifth
citation (Baye, M. R., & Prince, J. (2022). Managerial Economics and Business Strategy (10th
ed.). New York, NY: Richard D. Irwin, Inc.)
