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THREAD DISCUSSION: IMMIGRATION
Exode Jean Jacques
School of Business, MBA, Liberty University,
Spring 2023.
Immigrants Flood The Labor Market And Drive Down Wages In The U.S
The claim that immigrants flood the labor market and bring down wages in the United
States is highly contentious, difficult to sustain, and remains an academic discussion. Scholars,
peers, and professionals from many disciplines, however, have differing opinions on the subject.
For whatever reason, one group believes it is a chance to encourage economic development in
the nation, while another assesses it as a socioeconomic danger to the country since it pushes
down wages.
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Yet, the first protagonists asserted that "the immigration boom has been a vital driver to
economic prosperity, and that even more immigrants will raise our national wealth even more"
(Borjas, 2019, p. 3). To support this case, they provide data based on historical events and the
significant human capital externalities created by high-skilled immigrants. Furthermore, the
National Academies of Sciences claims that "immigration is integral to the nation's economic
growth" (Zhu & Pulleyblank, 2019, p. 11), and immigrants have increased labor supply,
increased demand as they spent money, moderated wages, and put downward pressure on
inflation, boosted output, allowed the labor market to avoid labor shortages, and... "willingness
to take on low-paid jobs in sectors such as construction and agriculture, in which Spaniards are
underrepresented" (Financial Times Citation2007b).
The other adversaries, on the other hand, have a negative correlation, showing that "native
wages are lower in markets with numerous immigrants, suggesting that immigrants diminish the
job possibilities of competitive native employees" (Borjas, 2006, p.5). This idea is founded on
the notion that "the equilibrium is established by the junction of the market demand and supply
curves" (Baye & Prince, 2022, p. 56). As a result, the equilibrium price combines the amounts of
demand and supply. In other words, the cost of the amount requested and the quantity
supplied is the same. Thus, as the need for employees grows, wages rise, attracting more
workers; nevertheless, with a limited supply of workers, incomes would continue to climb.
When the demand for workers increases, salaries rise, attracting more workers, which is then
balanced by a new supply of workers, leading to a fall in wage costs. Our perspective supports
the first type of peers since they give fact-based analysis to support the notion that immigrants
are vital human capital in our economy.
From a biblical perspective, Exodus 22:21 says that "You shall not wrong a sojourner or
oppress him, for you were sojourners in the land of Egypt” (The ESV Study Bible, 2008). From
the context, the verse urges us to be more compassionate towards others, especially those who
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are immigrants among us knowing that we are all God’s creatures, strangers on the earth that is
God’s property.
References
Borjas, G. J. (2019). Immigration and economic growth.
Borjas, G. J. (2006, January). The impact of immigration on the labor market. In Conference on
Labor and Capital Flows in Europe Following Enlargement, organized by the International
Monetary Fund, the Joint Vienna Institute, and the National Bank of
Poland.
Financial Times. 2007a. Modernized Nation Faces Uncharted Territory.
The ESV Study Bible (2008). Wheaton, IL: Crossway Bibles
Thread response #1
Congratulations, Nicole,
I appreciated reading your analytical essay since it highlights significant socioeconomic
elements of the subject. Yet, some peers and professionals stress the high-skilled immigrants
who stimulate economic development in the US by bringing required human capital and
fundamentally challenging native-born professionals, as “some authors have argued that
immigrants are more entrepreneurial than natives” (Tengeh, 2013, p. 356). One of your
arguments is pertinent to the underserved illegal immigrants. Consequently, you pointed out
that "Other immigrants and presumably illegal immigrants have been discovered to take up
laborintensive or agricultural jobs that other native-born people are not taking or opting to
remain jobless". Clearly, considering this group of individuals who, for the most part, have been
underpaid owing to their immigration status despite doing essential occupations that generate
our GDP since they are the ones on the farms to brave the mood of the environment.
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Overall, “obtaining comprehensive immigration reform is one of the most important
legal issues facing those communities” (Ozcan, 2020, p. 1041)As a result, from a personal
standpoint, I advocate for a stronger immigration system that can recover what our corporations
are searching for in China in terms of group market labor, allowing China to become our largest
competitor.
From a biblical perspective, Exodus 22:21 says that "You shall not wrong a sojourner or
oppress him, for you were sojourners in the land of Egypt” (The ESV Study Bible, 2008). From
the context, the verse urges us to be more compassionate towards others, especially those who
are immigrants among us knowing that we are all God’s creatures, strangers on the earth that is
God’s property.
References
Ozcan, B. (2020). The relationship between immigration, labor market conditions, and GDP:
evidence from the states of the USA. Global Business and Economics Review, 23(1), 79- 99.
Tengeh, R. (2013). Advancing the case for the support and promotion of African
immigrantowned businesses in South Africa. Mediterranean Journal of Social Sciences, 4(2).
The ESV Study Bible (2008). Wheaton, IL: Crossway Bibles
