Question, how do you factor in minimum wage laws into this equation? Particularly when it comes to immigration of low-skilled immigrants only. If minimum wage exists, and low-skilled immigrants compete for the same low paying jobs as poor native residents, will that not have a long term effect on unemployment and wages? They will essentially be competing for the same (limited number of) jobs and due to minimum wage the companies will be unable to utilize the increased supply of labor to increase their own production.
@tryphonkorm
2 жыл бұрын
You assume perfectly elastic demand for work which is not realistic. In all other cases the equilibrium wage will be lower than before the migration.
Пікірлер: 3
🔥🔥🔥
Question, how do you factor in minimum wage laws into this equation? Particularly when it comes to immigration of low-skilled immigrants only. If minimum wage exists, and low-skilled immigrants compete for the same low paying jobs as poor native residents, will that not have a long term effect on unemployment and wages? They will essentially be competing for the same (limited number of) jobs and due to minimum wage the companies will be unable to utilize the increased supply of labor to increase their own production.
@tryphonkorm
2 жыл бұрын
You assume perfectly elastic demand for work which is not realistic. In all other cases the equilibrium wage will be lower than before the migration.