Running head: NET ADVANTAGE OR DISADVANTAGE OF IMMIGRANTS 1

Net Advantage or Disadvantage of Immigrants

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Currently, the US is considered as home to the largest population of immigrants

globally. Although immigrants assimilate at a faster rate compared to other developed

countries, the immigration policy has become a greatly contentious problem in the country.

Whereas most of the discussion focuses on the social problems, the fiscal impacts of

migration are apparent. The economic model predicts and the research affirms that the

salaries are not influenced by migration over a long-term and that the economic impacts of

immigration are generally positive for the natives and for the economy.

Has the increase in the rate of immigration witnessed since the year 1970 resulted to a

reduced salary development for the native employees? Study done by Abramitzky, Ager,

Boustan, Cohen and Hansen (2019) among others does not offer support for this argument.

Rather, the proof shows that the increment in migration surges the overall labor supply,

organizations increase their investments in order to balance any decrease in the capital per

employee, thus, keeping the average wage from dropping over a long-term. Also, migrants

are always deficient alternatives for the native employees in the cities industrial market. This

implies that they cannot contest for similar opportunities and put negligeable descending

pressure on the salaries of the natives. Further, Artero and Chiodelli (2020) highlight that

migrants are at the lead of ingenuity and innovation in the US cities, responsible for a

excessively broad segment of potent filing, and higher spots at the top project capital-funded

organizations. Additionally, the immigrant’s existence always generates chances for the less-

skilled inborn employees to be expert within their jobs, hence raising their rate of efficiency.

Also, the immigrants enhance the government’s economic condition, since most of the

immigrants pay taxes over a long-tern as compared to their consumption in the government

services. Nonetheless, the native-born residing in the cities with huge absorptions of low

skilled immigrates might face a large tax burden, as the migrants pay less. A universal

perspective in the cities is that the immigrants are taking job opportunities from the native-
NET ADVANTAGE OR DISADVANTAGE OF IMMIGRANTS 3

born. However, though the immigrants are deemed to rise the labor supply, they

correspondingly spend their salaries on the daily expenses like homes and food, thus

expanding the domestic economic demand (Artero, & Chiodelli, 2020). The increased

demand generates more job opportunities to build more homes and other services in the

cities. Most empirical researches show long-term advantages for the employment as well as

wages of the natives from immigration, though other researches propose that these benefits

are attained at the cost of short-term disadvantages from higher unemployment and lower

pays of the natives.

On the other hand, the standard economic model highlights that whereas advanced

labor supply from the migration might originally reduce salaries, over time companies raise

their asset to reinstate the amount of capital per employee that then reinstates the salaries.

Further, stable development in the capital-labor percentage averts employee’s average

efficiency, and thus, their regular salaries from falling over long-term. Weden, Miles,

Friedman, Escarce, Peterson, Langa, and Shih (2017) assert that whereas growth within the

capital stock maintains average salaries from declining, immigration might impact the

relative salaries of various kinds of employees by mainly changing their relative supplies.

The recently-arrived migrants are generally expected to possess a high educational and skills

as compared to the native-born. Therefore, the migration has mainly increased the supplies of

the most and least accomplished employees.

In summary, I believe that though immigration have a number of impacts on the

native-born, but there are mainly responsible for the fast rate of advancement in the cities.

Also, the economists affirm that the impacts of migration on the economy of United States

are generally positive. Migrants, either low or high-skilled, are unlikely to replace the

native’s employees or even decrease their salaries over a long-term. Although, they might

lead to various short-term disruptions within the labor market. Arguably, immigration might
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essentially have crucial long run advantages for the natives, pushing them into a higher-

salaried occupation as well as increasing their pace of innovation and productivity growth.
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References

Abramitzky, R., Ager, P., Boustan, L. P., Cohen, E., & Hansen, C. W. (2019). The Effects of

Immigration on the Economy: Lessons from the 1920s Border Closure (No. w26536).

National Bureau of Economic Research. Retrieved from:

https://budgetmodel.wharton.upenn.edu/issues/2016/1/27/the-effects-of-immigration-

on-the-united-states-economy

Artero, M., & Chiodelli, F. (2020). Migration, Religion, and Residential Segregation at the

Urban Level: The Case of Muslim Migrants in Rome and Milan. Sociological

Inquiry, 90(4), 867-890. https://onlinelibrary.wiley.com/doi/abs/10.1111/soin.12322

Weden, M. M., Miles, J. N., Friedman, E., Escarce, J. J., Peterson, C., Langa, K. M., & Shih,

R. A. (2017). The Hispanic paradox: Race/ethnicity and nativity, immigrant enclave

residence and cognitive impairment among older US adults. Journal of the American

Geriatrics Society, 65(5), 1085-1091. Retrieved from:

https://www.nber.org/papers/w26536