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Chapter 14: Q.35 (page 351)

How would you expect immigration by primarily low-skill workers to affect American low-skilled workers?

Short Answer

Expert verified

The supply of low-skilled employees changes to the right as the number of low-skilled immigrants rises.

Step by step solution

01

Definition

Low skilled labor:

The term "low skilled labor" refers to a part of the workforce with a limited skill set or low economic value for the work performed. Unskilled work is commonly defined by a lack of educational attainments, such as a high school diploma, and is associated with lower salaries.

02

Explanation

With more low-skilled immigration, the supply of low-skilled employees shifts to the right, lowering salaries and increasing the equilibrium number of low-skilled workers. Immigration will have a favorable impact on salaries and employment in the United States.

As the wage rate for low skilled workers decline, the demand for low-skilled workers would increase. So, the increase supply of labor would be quickly absorbed.

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