Question

What would happen if a receiving country suddenly ceased accepting immigrants into the workforce? What can you say about the impact of immigrants on wages and spending?

Answer 1

Answer:

The primary impact of immigrant inflows to a country is an expansion in the size of its economy, including the labor force. Per capita effects are less predictable: An injection of additional workers into the labor market could negatively impact some people in the pre-existing workforce, native- and foreign-born, while positively impacting others. The wages and employment prospects of many will be unaffected. The direction, magnitude, and distribution of wage and employment effects are determined by the size and speed of the inflow, the comparative skills of foreign-born versus native-born workers and of new arrivals versus earlier immigrant cohorts, and the way other factors of production such as capital adjust to changes in labor supply. Growth in consumer demand (immigrants also buy goods and services), the industry mix and health of the economy, and the nation’s labor laws and enforcement policies also come into play.

Explanation: