Immigrants and Wages(More proof that illegals drive down the wage scale.)

The Washington Times ^ | May 8, 2006 | Alan Tonelson

[kellynla]

Ever since President Bush unveiled his first guest worker plans early in his first term, employer claims of labor shortages have dominated the economic side of the national immigration debate. Without an ever-greater inflow of immigrants, representatives of numerous industries have warned, their sectors literally will run out of workers. Indeed, these business leaders insist, U.S. immigration policy has been so restrictive they have been forced to hire illegal immigrants to stay in business and thereby keep the economy growing.

These views, and related calls to open U.S. borders wider, have been reinforced by much of the conventional wisdom surrounding the American economy. The native-born population's birthrate is relatively low and consequently this population is aging and stabilizing. Moreover, as President Bush and his allies keep repeating, legal and illegal immigrants alike are mainly doing "the jobs Americans won't do" -- physically demanding labor in low-paying but essential industries.

Yet the most important statistics available show conclusively that, far from easing shortages, illegal immigrants are adding to labor gluts in America. Specifically, wages in sectors highly dependent on illegals, when adjusted for inflation, are either stagnant or have actually fallen.

Both textbook economics and common sense teach that wages are a surefire measure of labor market abundance or shortage. When labor is genuinely scarce, and too many employers are chasing too few workers, businesses typically bid wages up in the competition to fill jobs.

When too many workers are chasing too few jobs, employers typically cut wages, confident that beggars can't be choosers. Labor Department data reveal that the wage-cutting scenario is exactly what has unfolded recently throughout the economy's illegal immigrant-heavy sectors.

[Young Scholar]

Of course, ceteris paribus, an influx of unskilled workers will put downward pressure on wages for low-skill jobs.

This will also put downward pressure on prices, reducing the cost of living, and I have yet to see a strong argument for why it would be a bad thing. Obviously, there may be additional factors that make certain types of immigration less desirable, but immigration itself is not bad for the economy.

[kellynla]

"I have yet to see a strong argument for why it would be a bad thing?"

you haven't been paying attention


when it's costing California alone, TEN BILLION A YEAR to allow illegals to stay here and another FIVE BILLION for AZ,NM,TX for starters and I won't even get into the number of hospitals that have had to close because they can no longer afford to give FREE MEDICAL CARE TO ILLEGALS...


"scholar?"... I suggest you change your screen name. LOL

[Young Scholar]

dictionary.reference.com/search?q=ceteris%20paribus

Notice I didn't advocate illegal immigration; I argued that an influx of low-wage workers would not, in and of itself, be a bad thing.

[kellynla]

"I argued that an influx of low-wage workers would not, in and of itself, be a bad thing."

well the piece is about ILLEGAL ALIENS
and yes the influx of ILLEGAL ALIENS IS A BAD THING!

gezzzzzzzzzz...

[Young Scholar]

The economic arguments (the main focus of the editorial) apply to any immigration--legal or illegal.

[kellynla]

"The economic arguments (the main focus of the editorial) apply to any immigration--legal or illegal.

Wrong again!

"Yet the most important statistics available show conclusively that, far from easing shortages, illegal immigrants are adding to labor gluts in America. Specifically, wages in sectors highly dependent on illegals, when adjusted for inflation, are either stagnant or have actually fallen.
Both textbook economics and common sense teach that wages are a surefire measure of labor market abundance or shortage. When labor is genuinely scarce, and too many employers are chasing too few workers, businesses typically bid wages up in the competition to fill jobs. When too many workers are chasing too few jobs, employers typically cut wages, confident that beggars can't be choosers. Labor Department data reveal that the wage-cutting scenario is exactly what has unfolded recently throughout the economy's illegal immigrant-heavy sectors.
Take restaurants. According to the Pew Hispanic Center, illegal immigrants comprise 17 percent of the nation's food preparation workers, 20 percent of its cooks, and 23 percent of its dishwashers. National Restaurant Association spokesman John Gay recently told the press his industry will need about 1.9 million workers in the near future though he "doesn't know where they will come from." According to data from the U.S. Bureau of Labor Statistics (BLS), though, inflation-adjusted wages for the broad Food Services and Drinking Establishments category fell 1.65 percent between 2000 and 2005.
In the booming construction industry, illegal immigrants make up some 12 percent of the work force. But from 1993 -- when median home prices began surging at a record pace -- through 2005, inflation-adjusted wages in the sector rose only 3.02 percent. And from 2000 to 2005 -- the height of the boom -- inflation-adjusted wages actually fell 1.59 percent.
Illegal immigrants are even more prominent in food manufacturing, where they comprise 14 percent of the workers. From 2000 to 2005, inflation-adjusted wages in this sector dropped 2.24 percent. And in the "animal processing and slaughtering" subcategory, where Pew research contends illegals make up fully 27 percent of all workers, inflation-adjusted wages fell 1.41 percent between 2000 and 2005. Similar figures emerge for many other illegal immigrant-heavy sectors as well, ranging from dry cleaning and laundry services, to parking facilities, golf courses and country clubs.
Examining more closely the pattern within the 2000-2005 period provides compelling evidence illegal immigrants have been used deliberately to force down wages. In most industries that use illegal immigrants heavily, inflation-adjusted wages rose modestly during the first years of the current decade. Yet soon after, they dropped significantly. Obviously, the nation's restaurateurs, hoteliers, contractors and cleaners decided paying workers $12 per hour and often less, with few or no benefits, was outrageous. In response, they stepped up efforts to bring Mexican and Central American labor markets and standards into the United States.
The wage trends in illegal immigrant-heavy industries make it clear these sectors are not facing shortages of native-born workers. They're facing shortages of native-born workers who will accept poverty-level pay. If the president and Congress have any interest in ensuring American immigration policy helps raise and not depress living standards, they'll tell these employers to stop the special-interest pleading and do what their predecessors throughout U.S. history have done: Raise pay high enough to attract the U.S. workers you need, and if your business models aren't good enough to accommodate living wages, invest in developing new labor-saving technologies. Denying pauper-wage industries the crutch of a wage-depressing flood of illegal immigrants is essential for keeping the United States a high-wage, First World economy. It is also essential for offering real economic opportunity to legal immigrants and native-born low-income Americans."

I don't know where you took English comprehension but I suggest you retake the course.

[Young Scholar]

If you read my original post, you'll see that I agree that immigration of low-skill workers (whether legal or illegal) puts downward pressure on wages. I just don't think this is necessarily bad.

[kellynla]

"I just don't think this is necessarily bad."

yea, well you're wrong again.

[Young Scholar]

How do you plan to prove that?

[jackbenimble]

If you read my original post, you'll see that I agree that immigration of low-skill workers (whether legal or illegal) puts downward pressure on wages. I just don't think this is necessarily bad.

You favor depressing wages and the standard of living for the poorest working Americans so that the richest Americans can get richer?

You say that is not necessarily bad but under what circumstances would that be good? There is something wrong with your moral compass.

[Young Scholar]

You favor depressing wages and the standard of living for the poorest working Americans so that the richest Americans can get richer?

First of all, I don't think it will necessarily depress the standard of living of even poorer Americans in the long run. Immigration will help keep the cost of living down (particularly as the current population grows older), probably benefiting the middle class most, but also mitigating long-term damage to the lower classes.

You say that is not necessarily bad but under what circumstances would that be good? There is something wrong with your moral compass.

I think it is good for the country as a whole. You are right that it does harm poorer Americans, but morally, I don't think those Americans are any more deserving of the jobs than the even poorer immigrants who stand to benefit from coming here. Thus, it likely actually does more "moral" good than harm.

[kstewskis]

you don't know any out of work American teenagers who need a job.

Nope, their parents usually take care of all their needs and wants.

I have an American teenager down the street, who since he was 12, has been mowing my lawn for the last 5 years. On the few weekends he wasn't able to do it, his little brother stepped in his place. He's graduating high school this month, will go to ASU in the fall...and will STILL mow my lawn on weekends.

They are around.

[A. Pole]

The wage trends in illegal immigrant-heavy industries make it clear these sectors are not facing shortages of native-born workers. They're facing shortages of native-born workers who will accept poverty-level pay. If the president and Congress have any interest in ensuring American immigration policy helps raise and not depress living standards, they'll tell these employers to stop the special-interest pleading and do what their predecessors throughout U.S. history have done: Raise pay high enough to attract the U.S. workers you need, and if your business models aren't good enough to accommodate living wages, invest in developing new labor-saving technologies.

Denying pauper-wage industries the crutch of a wage-depressing flood of illegal immigrants is essential for keeping the United States a high-wage, First World economy. It is also essential for offering real economic opportunity to legal immigrants and native-born low-income Americans.

[raybbr]

Thus, it likely actually does more "moral" good than harm.

Where is the moral justification for limiting the immigration, at about 85%, to one culture/race (hispanic). And, don't tell me it's a geographical issue. If we truly wanted to bring immigrants to bolster our "melting pot" theory we would be allowing and encouraging people from other parts of the world.

The geographical explanation is an excuse due to the laziness of govt.

[ARCADIA]

"It is also essential for offering real economic opportunity to legal immigrants and native-born low-income Americans."

Maintaining that opportunity or upward mobility is key; without that capitalism will end swiftly. Within years we will see a changing work environment that will begin to resemble Europe's failed workers paradise; with maximum 35 hours weeks, enforced job security, and other regulated perks.

Through illegal immigration the capitalists are distorting the very market forces that mantain them. They are destroying the middle class, and headed for extinction.

[Havoc]

Right.. just like you'll need to see the evidence that the mob even exists....

[cripplecreek]

I can prove the mob exists.

[Edie]

I am telling you guys once again. I repeat. We have got to get out their and march. Just like the illegal immigrants and their activists did. Do you really think these guys are gonig to admit that millions of Americans are agains this. No. They will say later that there were not that many Americans out their demonstrating to start this. Actions or rather marches speak louder than words. It is an embarassment to this administration to have millions of illegal immigrants and their activists out there marching and demanding amnesty. They are trying to shut them up as soon as possible. It will be even more embarrassing to have millions of Americans demonstrating to close the border and enforce the immigration laws on the books. Now you do you think Bush and our senators/gop representatives will look the biggest fools ignoring. Their citizens or illegal immigrants. You are fooling yourself if you think that writing them and emailing them is enough. All they have to say is they didn't get your letters or phone calls. It's time to get off your comfortable couches and get on the street and demonstrate. Also buy no Products with "Made in Mexico" on them. It's time we started an economic boycott against Mexico.