Allison M.

Torres
______________________________________________________________________________

TO:

XXXXXX X. XXXXX, Instructor

FROM:

Allison M. Torres, Student

DATE:

October 8, 2014

SUBJECT: The Economics of Immigration: Who Wins, Who Loses and Why
About 8 million out of an overall population of 11.2 million illegal aliens, i.e., 71.4 percent, are involved
in the workforce in the U.S. Many U.S. citizens are aware of the increase in illegal immigrants in the
workforce, but do they know what it is doing to the U.S. job market?
One of the concerns that have been a result from the increase in the amount of illegal immigrant is if
illegal immigration reduces the wages for native-born Americans? In a recent study, researchers have
found that immigrants have increased the standard of living for Americans because of the increasing of
wages, and the decreasing in prices. So, it is more complicated than the wages increasing or decreasing.
It is about the affect that immigration is having on the U.S. economy.
So now another question comes up: How can having more workers competing over the same jobs lead to
higher wages? The answer to that question is that it is not that there are more workers fighting for the
same jobs, but that there are more jobs that are being filled. An increase in immigration leads to an influx
of people willing to do cheap labor, which many small businesses, such as restaurants, are more than
happy to take. Also, immigrants not only supply labor, but they demand it. A larger domestic population
through immigration creates more potential customers for business, as well.
Another question that arises from the increase of immigration in the workplace is, Does immigration
help the economy grow? Economic growth occurs when American workers and firms do their jobs
efficiently and successfully. Immigration actually brings innovation to the U.S., which is the most
important factor that drives economic growth. Immigrants, especially high-skilled immigrants, are more
likely to come up with new inventions than Americans, simply because they have more on the line than
Americans.
Immigrants are looking for any type of job that will hire them so that they can make an income for their
families. Americans have that incentive, as well, but immigrants have more of a determined mindset.
Also, immigrants can bring unique knowledge about foreign markets to American firms, which can
potentially increase our economic growth.
It is not just the high-skilled immigrants that can help our economic growth in America. Low-skilled
workers can also help the economic growth because they are more versatile and more willing to move,
unlike most native-born Americans.
So, whom does immigration hurt? If we look at the big picture, the problem is that not everyone is going
to be satisfied. Economists are concerned about the effect of immigration on low-income, native-born
workers. Keep in mind; the literature is divided on whether an increase in low-skilled immigrant labor
hurts low-skilled native workers in the long run or not. It is true that in individual cases, there will be

workers that get put out of jobs because of the competition that immigrants bring, but as a whole, we are
economically growing.
In addition, those who are more opposed to liberal immigration policies for undocumented American
workers in America are concerned with about fairness and the integrity of America. There will be many
debates that will occur because of this issue in America, but the main thing to take away from this article
is that more immigration is good for the economy.

Sources:
Immigration Issues, Fair 35, 2013, URL
The Economics of Immigration: Who Wins, Who Loses and Why, Christopher Matthews, January 30, 2013, URL

Ten Economic Facts About Immigration, Michael Greenstone and Adam Looney, September 2010, URL

Will Immigration Reform Work This Time? Alex Altman, January 29, 2013, URL

Immigration, Productivity, and Competiveness in American Industry, Gordon H. Hanson, January 2011, URL