Sociology Research Paper

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Immigration and the Economy i
Immigration and the Economy i

How and Does Immigration Affect the American Economy?
A Review of the Literature

Joshua Kashani, Ahmad Khalil, JD Lindayag, Francis Ignacio
Sociology 4
Professor Hoshiar
October 3, 2012
Immigration and the Economy ii
Immigration and the Economy ii
Does Immigration Affect the U.S Economy?
A Review of the Literature
In this day of age, many Americans are having a hard time looking for jobs due to the economy. The area of concern that we are researching is the effects of immigration on U.S. job employment rates and whether it’s heavily affecting US citizens or not. There are four conflicts which we decided to cover, which are, wages, education, race, and also supply and demand for U.S. workers (Peri, 2010; Anrig, 2004; Camarota, 2010; & Smite, 1997). The reason why we decided to research this topic is to provide information on how immigration either a positive or negative effect to the employment rates here in America. With that said, our hypothesis is that immigration will have a negative effect on American workers due to the fact that they will have more competition to the mass immigration over the past decade. The rest of this literature review will be split up into four sections, discussing the four conflicts we have chosen followed by a conclusion. 1 Does the education level depict who is affected more severely by immigration? 2 Does immigration impact wages?

3 Does immigration increase supply of labor create a demand for less American workers? 4 Are different races (location) affected differently by immigration? Effects on Wages
Illegal immigration has a dramatic effect on wages in the lower class area of the American economy in many different ways (Caramota, 2005). One way that immigrants affect wages is by working for less money once they arrive to the country (Caramota, 2005). Most of the time the level of education of immigrants is much lower than the level of education of native United States citizens (Caramota, 2005). This means that if Immigration and the Economy iii Immigration and the Economy iii

an immigrant and a native were both working in the same career, the illegal immigrant would tend to earn less money than educated natives, “in other words immigrants are poorer than natives, but they generally earn wages that commensurate with their skills, which as a group tends to be much lower than natives”(Caramota, 2005, para. 3). Since illegals are willing to work for less money, business owners would rather hire an illegal than a native because they can save a lot of money for the business by doing so (Caramota, 2005). Because the United States has a minimum wage requirement in each state, legal citizens are not able to compete with illegal immigrants by accepting lower wages (Caramota, 2005). Also, since there is a salary tax that every U.S citizen has to pay to the government, natives would be doomed financially if they were taxed on earning wages under the minimum wage requirement (Caramota, 2005). Many employers view immigrants as better employees and it is very common that small businessmen and women will disclose that they favor Hispanic and Asian immigrants over native workers (Caramota, 2005). There are natives who aren’t earning wages since business owners favor hiring immigrants (Caramota, 2005). Consequently, the threat of further immigration will continue to put a downward pressure on wages (Caramota, 2005). Subsequently, immigrants are eager to work for less money and that is always going to keep the wages down in the lower end of the labor market (Caramota, 2005). Even though immigrants bring down wages for those less skilled jobs, “these wages do not vanish into thin air (Caramota, 2005). Employers now have more money either to pay higher wages to more educated workers or to retain as higher profits”(Caramota, 2005, para. 8). The money is being distributed...
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