Low-skilled Mexican immigrants are making the US labor market

more efficient.

A recent National Bureau of Economic Research (NBER) study has found that
low-skilled Mexican immigrants are more responsive to changes in employment,
and are quick to relocate when there is a period of high unemployment in the area
they live in.
This is good for an economy that often has a surprising number of jobs that go
unfilled.
The authors, Brian Cadena of the University of Colorado- Boulder and Brian
Kovak from Carnegie Mellon University found that between 2006 to 2010, in
towns where the Great Recession had caused unemployment of 10%, the
population of Mexican immigrants dropped by 7.6%. In contrast, the population of
low-skilled native workers did not decline at all, while that of high-skilled workers
declined by 5.3%.
Essentially, immigrant Mexican workers had no qualms about moving to an
area with greater opportunities for employment, unlike their native-born
counterparts.
This high geographic mobility has had a net positive effect on the local low-
skilled population as well. The Mexican immigrants moving out means that more
jobs are freed up for native workers.
Mexican immigrants are not inherently nomadic; when there are jobs available
locally, they are unlikely to move, just like native workers.
But there are many reasons why Mexican immigrants are quicker to react to
changes in demand for their labor. One reason for their mobility is that they
usually do not have or are not eligible for Unemployment Insurance (UI) and other
social safety net programs, and so are completely dependent on the wages they
earn.
Another reason is that most Mexican immigrants intend a relatively short stay
in the US. They plan to work until they have saved up some capital to take back to
Mexico. Because of this, they are likely to find unemployment costlier than native
workers, and are more willing to do whatever it takes to find new employment
quickly.
Mexican immigrants also have access to strong social and familial networks in
most parts of the country. These networks provide them with information about
the employment situation in different parts of the country. These networks also
lower their costs of moving and provide them with contacts in the job market,
which help them find employment quicker.
1. Explain Mexican immigrants response to changes in the US job market
based on segmented labor market theory of migration.
2. Explain Mexican immigrants response to changes in employment based
on social capital theory of migration.
3. How did the Great Recession affect the Mexican and natives employment
opportunities in the US?
a) The unemployment rates for both groups increased;
b) The unemployment rates for both groups decreased;
c) The unemployment rate for Mexican immigrants increased, while
natives employment remained unchanged;
d) The unemployment rate for natives increased, while Mexican
immigrants employment remained unchanged.
4. What kind of relationship does Mexican immigrants geographic mobility
have with natives employment opportunities?
5. What are some reasons for Mexican immigrants quick response to
changes in demand for their labor?