Question

Discuss the economic arguments concerning restrictions on immigration. Be sure to include in your discussion both economic analysis and empirical evidence

Answer 1

The economic arguments concerning restrictions on immigration are as follows:

1. Increased Competition: Immigrant groups may be a competition to the local workers in the job market, thus indirectly rising the burden on the social welfare system. According to a 2011 report., Denmark's strict immigration policy has saved the country from 6.7 billion euros compared to previous policies which were lenient towards immigrants.

2. Environment space and quality of resources: Thus argument us us because increased number of immigrants will consume more space, thus space cobtraint will become an issue. This will lead to lesser space of the original citizens of the country. Quality and quantity of resources will gradually decrease thus leading to an inferior quality of life. This theory dates back to the Malthusian theory. Although

3. Wage disparities: Immigration can create wage disparities. Immigrants can work at.a lower wage than the local people, thus creating wage disparities. USDA analysis of the agricultural sector found the downward pressure on wages after the increase in the foreign labour supply.

4. Effect on the Treasury: Immigrants will pay taxes to the government, the government's treasury amount will increase. But the question remains whether the amount of taxes paid by the immigrants exceed the amount of welfare benefits used by them.