Suppose initially that immigrant labor and native-born labor are complementary resources. Explain how substantial immigration might change the demand for native-born workers, altering their wages. Next, suppose that new immigrant labor and previous immigrant labor (not nativeborn) are substitute resources. Explain how substantial immigration of new workers might affect the demand for previous immigrants, altering their wages.
Suppose initially that immigrant labor and native-born labor are complementary resources. Explain how substantial immigration might change the demand for native-born workers, altering their wages. Next, suppose that new immigrant labor and previous immigrant labor (not nativeborn) are substitute resources. Explain how substantial immigration of new workers might affect the demand for previous immigrants, altering their wages.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 18SQ
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Suppose initially that immigrant labor and native-born labor are complementary resources. Explain how substantial immigration might change the demand for native-born workers, altering their wages. Next, suppose that new immigrant labor and previous immigrant labor (not nativeborn) are substitute resources. Explain how substantial immigration of new workers might affect the demand for previous immigrants, altering their wages.
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