Is Immigration An Economic Benefit To The Host Country

Topics: Economic growth, United States, Immigration to the United States Pages: 6 (1316 words) Published: January 25, 2015


Immigration is an Economic Benefit to the Host Country
Name: Cindy Winata
Student ID: 12413091
Professor: Vyas Utpal

Immigration is an Economic Benefit to the Host Country
Is immigration an economic benefit to the host country? As the world globalizes, this issue has become a topic of a debate in recent years. The inflow of immigrants may bring a positive effect or negative effect to the destined country. However, in some countries like the United States, their economic development has become dependent on immigrants. As Marco Rubio once said, “Americans believe in the value of immigration”. Immigration has made and is making favorable contribution in term of economy to the host country. Immigrants have benefited the U.S economy by filling in less-skilled job vacancies, increasing native’s wages and labor productivity, and lastly driving innovation.

Immigrant Workers Fill the Growing Number of Job Vacancies
Immigration plays an important role in filling in the less-skilled jobs vacancies in United States. The main reason why the United States has become significantly reliant on immigrants is because of the growing shortage of workers that are willing to do the less-skilled jobs. In recent years, American worker’s educational level has improved dramatically, thus result in the growing number of less-skilled jobs in which U.S-born workers are available. Less-skilled immigrants are needed to fill in occupations such as construction, farming, fishing, food processing, food preparation and service, building maintenance, landscaping, and many more. Research by Madeline Zavodny and Tamar Jacoby shows that based on the average O*NET score, a database that measures the attributes of every U.S occupation, 13% more immigrants spend more time climbing ladder and working in high places, 12% more immigrants do works that involve kneeling, crouching or crawling, 10% more immigrants work with more exposure to dangerous condition, and 7% and 6% more immigrants work with exposure to containments and using hazardous equipment respectively (Zavodny & Jacoby, 2013). In addition, at a restaurant owned by Tad Mitchell, hiring workers to do the restaurant-scale dishwashing is not easy as being a dish-washer involves doing many repetitive movements, crouching, throwing trash, controlling dirt and grease, and has a consequence of a danger of possible falling. Mitchell said, “Only immigrants want these jobs and they work hard” (Zavodny & Jacoby, 2013). He didn’t hire American for over one year because Americans don’t apply for this kind of job. Immigration Boosts Native’s Wages and Increases Labor Productivity

The presence of young, fit, enterprising, and hard-working low-skilled immigrants has benefited many native employers in terms of wages and labor productivity. Immigrants increased the wages of natives through 3 ways, which are: getting more profit by hiring immigrants with low salary, increased gross domestic products, and diversity. Many natives with a high school diploma or better education has benefited from hiring both documented and undocumented immigrants. Immigrants work for lower wages than natives, thus employer receives more profits with the same productivity. NIESR study has analyzed the effect of immigration on labor productivity from the value of output produced by each worker and based on that study, industries who had higher labor productivity are the one with more immigrant workers. These correlations are often seen in the manufacturing and real estate sectors. (Cohen, 2013). A study by Giovanni Peri, an economist at University of California at Davis shows that “the wave of immigrants that entered the United States from 1990 to 2007 increased national income per worker by about $5,400 a year on average, in dollars” (Porter, 2012). Immigration also results in an increase in U.S. gross domestic product of at least 0.84 percent annually. This also leads to an...


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Cohen, N. (2013). Immigration brings economic and fiscal gains to UK, reports show. Retrieved December 7, 2013, from http://www.ft.com/intl/cms/s/0/9172b1f4-455d-11e3-b98b-00144feabdc0.html#axzz2mnAe6hzq
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