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> Sorry, I don't agree. If the supply of labour increases without any consequent increase in demand, then one would expect to see the price of labour reduce, ri
by mmarq 5y ago
> Sorry, I don't agree. If the supply of labour increases without any consequent increase in demand, then one would expect to see the price of labour reduce, right?
Which is only true if the foreigner in question teleports themself to their country of origin whenever they are not working. Even if they got all their food delivered from Poorland, there would be an increased demand for deliveries.
> That's what econ 101 would say, right? You're the one making the claim that it doesn't. If such a claim is self evident, then you should be able to produce some kind of reasoning as to why it is so, no?
No, unless we assume that workers don't consume anything and are perfect substitutes, if there is perfect information in the labour market, etc...
None of these assumptions holds true, so the impact of immigration on wages can't be estimated like the impact of potato overproduction on the potato market. So it becomes an empirical question, and evidence suggests that no country experienced long term wage compression because of immigration.
- disgruntledphd2 5y agoGreat, so you have empirical evidence. Can you please share some links with me? I'm open to being convinced of this rather strong claim, but I'd prefer not to take it on faith.