Question

In 4 paragraphs how do immigrants take jobs away from native workers. Give examples

Answer 1

The simple labor market model of demand and supply assumes that migrants are exactly the same workers as natives, with the same skills, education, and talents, and thus, their arrival increases the supply of labor. The irrefutable prediction of this model is that the wages of all workers go down and unemployment increases for all, as the market for labor becomes saturated in the short-run.

The reality is somewhat different: native workers and migrants differ in their country-specific human capital, such as language fluency, professional networks, and social and cultural knowledge. Initial skill differences make new immigrants imperfect substitutes for native labor. In addition, we all know that labor shortages and job vacancies can co-exist. Vacancies exist even under high unemployment because of mismatches between job opportunities and the ability (qualifications) or willingness of natives to fill those jobs.At higher skill-level jobs, vacancies can also exist in the short-run because the native labor force might not be qualified as could be the case for example of opportunities arising from rapid technological advances. Here, hiring qualified immigrant workers can fill the gap. Immigrants are also more likely than natives to start a business and create their own jobs at the very least.Immigrants as consumers increase the demand for goods and services. This higher demand in turn affects the labor market by boosting the demand for labor, leading to an increase in equilibrium employment.