Labor Economics

A . The merchandise clearing wage and use of goods and services train can be determined by finding the carre four of the advertise render and demand schedules . For the render curve , we solitary(prenominal) use the supply curve of natural born citizens .The market clearing wage is therefore 8 and the conflict train is also 8B . If immigration is allowed , we com seate for the market wage and employment level the same way , however our new supply schedule would be the sum of the native born supply and the immigrant supply curveWith immigration allowed , the market wage drops to four and the employment level rises to 12C . At a wage of 8 , the labor supply curve gives a workers . When the wage is at 4 , the supply schedule of native born workers gives only 4 workers willing to work at that wage . This means that four native born workers have lost their jobs to immigrants through the grave of wagesD .

We obtain the number of immigrant workers by looking at the man-to-man supply . With a wage of 4 , the number of immigrant workers is 8 . This gives us an immigrant displacement rate of 4 /8 0 .5E . Apart from simple wage and employment levels , a titanic immigrant labor force will also have accessary effects . A large undocumented immigrant population would put strains on the social welfare system as these immigrants would believably have little to no insurance coverage second , apart from lower wages , the larger...If you want to get a full essay, order it on our website: Ordercustompaper.com

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