Final answer:
Immigration by primarily low-skill workers can result in wage reductions for American low-skilled workers, but the effects are relatively small. Additionally, it can stimulate job growth in local sectors and create more opportunities for low-skilled workers.
Step-by-step explanation:
Immigration by primarily low-skill workers has the potential to affect American low-skilled workers in several ways. One major effect is that it tends to reduce wages for domestic low-skill workers. Studies have shown that as the number of employed immigrants with no more than a high school diploma in the labor market increases, wages for native low-skilled workers decline, with an estimated decrease of about 1%. This is because the presence of low-skill immigrants creates more competition for jobs in this sector, leading to a downward pressure on wages. However, it's important to note that these wage effects are relatively small and are likely mitigated by minimum wage laws.
In addition to the wage impact, immigration by low-skill workers can also have positive effects on the local low-skilled labor market. Immigrants contribute to increased demand for local goods and services, which in turn stimulates job growth in these sectors. Moreover, employers may opt for more labor-intensive production processes in response to the availability of abundant low-skill workers, creating more job opportunities for low-skilled workers.
Overall, immigration by primarily low-skill workers has a mixed impact on American low-skilled workers. While it can lead to wage reductions, the effects are relatively small, and there are positive effects such as increased job opportunities in certain sectors. It's important to consider these complex dynamics when formulating immigration policies.