1. IMMIGRATION The Missing Link Chapter 18

2. 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

3. Actual Immigration  Despite the fact that immigration has seen increases between 1850-1914 we much higher

4. 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

5. 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

6. 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

7. 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

8. Cost-Benefit Analysis  Overall people benefit from immigrants entering their culture  Through culture and the economy

9. 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