61.1k views
2 votes
In what ways does America still

take advantage of cheap immigrant labor to accomplish difficult tasks?

1 Answer

0 votes
This (a measure of what occurs naturally/sports boundary line) analysis focuses first (and most importantly) on (entering into a country)'s direct effect on the (process of people making, selling, and buying things) through the addition of workers to the labor force. At the most basic level, (entering into a country) increases the supply of labor in the (process of people making, selling, and buying things). More labor means more products (that are bought and sold) and services being produced, so that national output (GDP) rises.
(entering into a country) also affects the prices of the inputs that are used to produce these products (that are bought and sold) and services. Those inputs for which (related to people who enter a country) labor substitutes will suffer as the prices of their services fall. Simply put, "substitutes" means two things that are almost the same as one another. As a plain/ugly example, red apples and green apples are almost perfect substitutes, so that an increase in the number of red apples would not only reduce the price of red apples, but also (at the same time) lower the price of green apples by about the same amount. In the big picture of (entering into a country), whereas we will see many people (who enter a country) are unskilled laborers, the strong thought (made beforehand) is that people (who enter a country) are substitutes for domestic unskilled labor.3 Therefore, an increase in the number of people (who enter a country) will generally decrease the wages of domestic unskilled workers.
People (who enter a country) are not substitutes for all domestic workers. A surprisingly big (or small) number of people (who enter a country) are low-skilled relative to native workers, and so tend to be poor substitutes for workers other than the low-skilled--that is, they do not do the same things at all. In the language (used by experts) of money flow/money-based studies, two factors that are not substitutes are called "makes more complete or perfect." For a simple example, think of supervisors and production workers. Suppose that, for every 50 production workers, we need one supervisor. If we increase the number of production workers, we will need more supervisors and their wages will rise. An increase in the number of people (who enter a country), then, will raise the wages of those domestic workers who are their makes more complete or perfect. The common thought (made beforehand) is that skilled domestic workers are makes more complete or perfect for people (who enter a country), so that an increase in the number of people (who enter a country) will raise the wages of domestic skilled labor. Capital may also be a (thing that makes something else complete or perfect) to immigrant labor, although the (event(s) or object(s) that prove something) on the (when two things work together equally well) of unskilled labor and capital is more confusing (because of two different possible meanings) than that of skilled and unskilled labor. In summary, an increase in (entering into a country) flows will lead to higher incomes for productive factors that are (combining in a way to make something better) with people (who enter a country), but lower incomes for factors that fight against people (who enter a country).
User Mhanada
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.