Thursday 18 October 2012

Are Illegal Immigrants Really Taking Jobs Away from American Worker's ?

When the supreme court voted to uphold the " Legal Arizona Workers Act " ( LAWA ) on May 25, the avility for states to revoke business license for firms hiring illegal immigrants was protected. (LAWA is distinct from Arizona SB 1070, which empowered law enforcement officers in Arizona to engage in racial profiling.)

Reaction to the decision among likely voters was strongly in favor: A Rasmussen poll conducted on May 27 and 28 found that 61 percent of Americans support a law in their state that would shut down companies that knowingly and repeatedly hire illegal immigrants.

An activists who advocate for restrictive immigration policies welcomed the ruling. There a downward effect on wages Says Jessica Vaughn, the director of policy studies for the D.C based Center for Immigration studies , referring to the introduction of undocumented workers in the market. There is so many occupations where wages have just been stagnant for many years, or even  declined like in construction building trades industry and custodial work. Of course its not just one thing , You can't control competition from china,But immigration policy is something that we can control as a nation.

Support for the penalization of companies hiring illegal workers can be chalked up to a variety of motivations, But the view that it protects American jobs has been embraced by many , including  politicians like Rep, Lamar Smith R Texas, the Chair of the House Judiciary Committee and a member of the Reclaim American Jobs Caucus. Not only is this law constitutional, it is common sense, American Jobs should be preserved for Americans and legal workers, he said of the high court 5-3 ruling. Today , there are 7 Million individuals working in the United States illegally. E-verify will help turn off the jobs magnet that encourages illegal immigration.

The debate over whether there is any correlation between immigration policy and the fortunes of American workers is in fact an open one. And according to Pia  Orrenius the senior economist for the Federal Reserve Bank of Dallas , the major question among most economists is actually why the impact of the nations 12 million illegal immigrants on the labor market is so small.

Given that the topic of the economic impact of immigration is so politically charged, scores of  studies have been ordered on the Subject, They widely - shared consensus holds that for every 10 percent increase in the share of foreign born workers in a specific area there less than 1 percent change in the average wages of legal residents, including for low skilled workers, says Orrenius . (Wages are used as the economic metric for employment in the U.S )

Two leading paper's that present the view of a minimal negative economic impact are immigration and national Wages: Clarifying the Theory and Empirics, published in 2008 by academics Gianmarco Ottoviano and  Giovanni Peri, and the landmark, The new Americans, Economic , Demographic, and Fiscal effects of immigration , published in 1997 by James P . smith and Barry Edmontson, working under the aegis of the 1990 immigration Act.

These econmists caution against extrapolating from anecdotes of immigrants coming to a specific town and taking jobs, smith and Edmontson do concede , though that the losers may be the less skilled domestic workers who compete with immigrants and whose wages will faill. But they go on to say, To the extent that immigrants specialize in activities that otherwise would note have existed domestically, immigration can be be beneficial for all domestic residents. In this case, there is little substitution of new immigrant workers for domestic workers.

The argument that an infusion of foreign workers represents a new and non-competing, workforce, and therefore poses little threat to the American worker, is buttressed by other economic analysis. Among them is the related concept that as immigrants , carry out jobs that native wouldn't want or even wouldn't exist if it weren't done by a foreigner , the native born American is freed up to specialize . And that complementary model improves overall efficiency, Finally the so called immigrantion surplus, Holds that the US economy must benefit from a net gain in goods and services because wages earned by immigrants tend to be lower than the cost equivalent of what they produce.



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