IMMIGRATION The Missing Link Chapter 18
Increasing Immigration Since WWII we have seen an upward trend of people crossing international borders Most of the people are leaving developing countries and entering developed countries People are leaving Asia, Latin America, and Africa and People are entering the U.S and Western Europe
Actual Immigration Despite the fact that immigration has seen increases between we much higher
Missing Link The flow of people is the missing link in modern globalization Lump of labor fallacy: this mistake is that there is a fixed number of jobs and if foreigners take them there will be less for natives
What actually happens The arrival of new immigrants shift the supply curve out The number of people in jobs will rise and wages will be lowered in the short run Long Run: labor demand curve shifts out, wages start to rise again
Assimilation Hypothesis Immigrants start out making less than natives but eventually catch up Second generation children of immigrants make it harder to tell the difference between natives and immigrants in the labor market
Culture Immigrants have a diverse impact on society and culture They increase the diversity of certain tastes and preferences They bring different music, art, fashion etc… Immigrants play an increasing role in advanced economies
Cost-Benefit Analysis Overall people benefit from immigrants entering their culture Through culture and the economy
Immigration This Power Point presentation was set up for module 8 and is a review of a chapter in a book called Sex, Drugs & Economics by Diane Coyle