Differences Between High Skilled And Low Immigrant Workers

High Skilled and Low Skilled differences There are big differences in production activities among high and low educated workers. They have different sets of skills, which they apply, in different types of jobs. Technically, if there is a large supply of low skilled, low educated immigrant workers, they decrease the wages of less educated natives5. However, because of such combinations between the two in the schooling distribution, they seem to have the same distribution as US natives. Because of this, their entrance into the states does not really change the supply of either group and it is not seen to change their wages. On the aggregate level, immigration does not explain the increases in wages for workers with college of high school degrees.
It is commonly known that natives with the same education and skill set are paid more than their immigrant counterparts, and this has to do with the immigrants having less bargaining power and much fewer options. For this reason, businesses tend to pay them a salary less than their marginal productivity, which in the end makes the business more profitable5. Doing this to save money allows them to increase their productivity by enabling them to hire more workers to do tasks often done best by natives. Having immigrants pushes these businesses to use the cheaper cost of employing them, and some of these jobs go to the natives as well. Also, because immigrants tend to hold jobs different from natives we cannot call the pay below marginal productivity “discrimination” 5.
Immigration will alter the economy in several different ways. It will increase firm’s investments; increase specialization among US natives, new technologies from firms and more jobs created. For these reasons immigration has shown few effects on less educated natives on the local and national