The Effects of Immigration on the Labor Market
The effects of immigration workers on the labor market are mostly determined by the skills of existing workers, the features of the host economy, and the capacity of the migrants. Similarly, the consequences will change depending on whether the immigration is short-term or long-term (Grossmann 2016, p 4).
Most immigrant talents do not match the talent of the host country's current workforce because the majority of them are unskilled laborers. This suggests that immigration has no influence on the earnings of the economy's current workers (Braceros 2017, p 3).
Similarly, in a situation where the skills of the immigrants are complementary, there is expected to be an increase in productivity that results in rising in wages of the existing workers.
Expansion of Labor Supply through Immigration
Additionally, immigration results in expanding labor supply that lead to a demand for labor. Primarily, migrants expand the consumer demand for products and services. In the long run, this results in more investments (Grossmann 2016, p 6).
The effects of such factors are employment and increased wages in the economy of the host nation. Because the numbers of the jobs in the economy are not fixed migration increases completion for the available jobs and create new ones. Consequently, to the extent to which such factors affect the investments and labor solely depends on the characteristic of the economy (Braceros 2017, p 5).
Other Mechanisms of Immigration's Impact on the Economy
Other two mechanism through which immigration affects the economy include firstly, immigration influences the mix of services and goods in the economy, and therefore it results in the industrial and occupational structure of the labor market (Grossmann 2016, p 8).
Moreover, immigration changes the use of technology used in the delivery of service and production of goods and service (Braceros 2017, p 2).
The empirical study suggests that immigration is good for the economy as the immigrants are willing to take low paying jobs which the workers of the host nation cannot take.
Bibliography
Braceros, M. (2017). Kicking out immigrants doesn’t raise wages. pp.1-5.
Grossmann, V., 2016. How immigration affects investment and productivity in host and home countries. IZA World of Labor.
