Question

Almost all countries have very strict policies on immigration control. In developed countries, the most often used argument is that migrants will negatively affect the local labour market. But there is very little support for this argument in the empirical studies, and many studies actually find the opposite result that migrants contributed positively to the domestic economy. Most politicians in the developed countries are very well educated. Explain how it is possible that they are still strongly opposed to immigration regardless of the opposite evidences from the literature.

Answer 1

Abstract

Though there are many benefits of immigrant workers that support ot economic development of coutry, For Example - Immigration fuels the economy. When immigrants enter the labor force, they increase the productive capacity of the economy and raise GDP.

Reason behind the politicians are still strongly opposing to immigration regardless the migransts contribution to domestic economy

1.Immigrants are more likely to move than natives, and by relieving these bottlenecks to expansion, immigrants increase the speed limit of the economy.

Growth accelerates as slack falls, a desirable scenario that follows from the improved allocation of resources in the economy. Therefore the politicians fear that there will be shortage of economic resources to native labors.

2. Normally immigrants moves to where the jobs are most demanded and it creates the competition between the native and immigrants and sub- sequently immigrants get selected for the same job due to having more skills and readiness to work on lower salaries

Therefore competing workers’ wages fall,

3. Immigration changes factor prices — it lowers the wages of competing workers, while raising the return to capital and the wages of complementary workers.

4.Complementary workers benefit from immgrition who comes from other countries to provide services to local residents.

The demand for these workers rises with more immigration. They may be construction supervisors, translators, pharmaceutical reps, or immigration lawyers. And consumers benefit from the lower prices of the goods and services that immigrants produce.

In conclusion there is fear among the politician that immigrants will over take the jobs of local residents and will cause to create unemployment in country.