Question

In: Economics

What are the benefits and costs to the US economy of labor migration (illegal and legal)...

What are the benefits and costs to the US economy of labor migration (illegal and legal) into the United States from Mexico?

What are the benefits and costs of the activity on the Mexican economy?

What policy should the US Government pursue regarding this activity?

Why do you support that policy?

Solutions

Expert Solution

The benefits of migration into the US are tremendous as this will mean that increased labour becomes available for employment. Also as they will in all probability take up lower end jobs to begin with this will mean that the labour for employment will be cheap. This will allow a great cost saving for US employers. It also allows a large pool to be employed from in the event of an emergency. The disadvantage to the US of such migration is that the problem of illegal immigration and the costs that it could create in terms of getting documentation in place. The mexican economy benefits from it as they benefit from a reduction in unemployment and also an improvement in their trade situation as the workers send income home. The US government has been working on the problem for a while now and this has been an issue. The US must ensure that all people migrating are doing so legally and so that they receive proper documentation when in the country. Only then should they be allowed to find employment. This is crucial. This is the right policy so as to ensure that people coming into the US from mexico gain employment but only if they have proper papers.


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