The question is from the textbook Inequality, Discrimination, Poverty, and Mobility chapter 2. Question # 5....
The question is from the textbook Inequality, Discrimination, Poverty, and Mobility chapter 2. Question # 5.
"Let the labor market in the U.S. consist of two types of labor, unskilled and skilled workers. Skilled and unskilled workers are complements to each other. Being able to work with unskilled workers makes skilled workers more productive. Assume there is a wave of illegal immigration into the U.S. consisting of unskilled workers that could be substituted for U.S. unskilled workers. What will happen to wages for both unskilled and skilled workers?"
Homework Answers
The wages of unskilled workers will decrease because of abundant supply of unskilled labour into US. also, it is quite evident that illegal immigrants agree to work at a very low wage rate and are preferred by employers over domestic unskilled labours.
Also, the wage rate of skilled labours will stay as it is.
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