Immigrant workers and US economy

Immigrant workers have significantly improved the U. S economy through innovation, labor competition, economic productivity, and enhanced occupational specialization, a positive effect on federal, state and local budgets, and negatively through utilization of public services and depressed wages. Immigrant workers not only diversify American culture, but they also promote growth through their diverse skills. Immigrant workers encourage labor specialization and consequent increase in productivity. According to Jayaraman and Ness (2015), entry of immigrant workers in the U. Immigrant workers have a diversified pool of talent which when positioned in top management and research positions, lead to innovations and increased employment opportunities. The growth in U. S economy is attributed to high levels of education and research-driven innovations of foreign workers. High concentration of immigrant-born workers results in increased productivity and eventually rapid growth in the economy (Bodvarsson and Van den Berg, 2013).

Given that immigrant workers compete with the native workers, the indigenous workers often shift to occupations that emphasize on language and communication skills which lead to enhanced specialization for both groups of workers. Labor competition changes the U. S economy through the relatively low prices of labor and redistribution of the domestic workforce which results in increased productivity. Immigrant workers have a fiscal economy on the U. S economy. Whether legal or illegal, immigrant workers contribute significantly to the federal budget. This has resulted to rapid growth in the capital per worker in the U. S economy. Unlike before the immigration where workers flooded a single firm, investments have been responsive to the high number of immigrant workers thereby increasing the size and number of firms and consequently economic growth.

Negative effects Although the positive impacts of immigrant workers on U. S economy have benefited the State as a whole, there are various adverse effects of these workers on the economy. As noted above, most immigrant workers are highly educated when compared to the natives, and as such, high numbers of these workers is likely to displace the native workers resulting to a high number of unemployed Native Americans. High rates of unemployment exert pressure on the U. S economy since the capital per worker is also low (Bodvarsson and Van den Berg, 2013). In addition to unemployment, immigrant workers depress the wages which may increase the number of workers willing to work at low pay thereby negating the importance of productivity, training, and innovation.

As a result, the U. Given their high education levels, immigrant workers add to the innovations and creation of job opportunities thereby achieving an upward trajectory in the U. S economy. As discussed in this paper, immigrant workers have an impact on the fiscal situation at the federal level. However, the budgetary implications may cost the U. S economy a substantial amount of money to pay for the public services utilized by children of and immigrant workers. Card, D. , & Peri, G. Immigration economics by George J. Borjas: A review essay.  Journal of Economic Literature, 54(4), 1333-49.  US high-skilled immigration, innovation, and entrepreneurship: Empirical approaches and evidence(No. w19377). National Bureau of Economic Research. Peri, G. Do immigrant workers depress the wages of native workers?.