How is increased legal immigration good for the United States? … How is increased legal immigration good for the United States? ChatGPT: Increased legal immigration can benefit the United States in several important ways — economically, socially, and strategically. Here’s how: Economic Growth and Productivity Labor force expansion: Immigration brings more workers into the economy, which helps offset America’s aging population and declining birthrate. Skill diversity: Highly skilled immigrants boost innovation, technology, and competitiveness, while lower-skilled immigrants fill essential jobs in agriculture, construction, healthcare, and services that are often hard to staff domestically. Immigration surplus: By increasing the labor supply, immigrants lower some costs but also raise productivity and returns to capital, generating a net economic gain. Innovation and Entrepreneurship Immigrants are disproportionately likely to start businesses — including high-tech firms that creat...
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Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 6 The Economics of Labor Markets Chapter 19 of 36 Earnings and Discrimination Section 10 of 16 … Most analyses of wage differences among workers are based on the equilibrium model of the labor market. Equilibrium is the point where wage level adjusts to balance labor supply and labor demand. However, this assumption does not always apply. … For some workers, wages are set above the natural supply and demand equilibrium level. There are three main reasons for above-equilibrium wages. #1: minimum wage laws Most workers (about 95%) are not affected by these laws because their equilibrium wages are well above the legal minimum. But for the least skilled and productive workers, minimum wage laws raise wages above the equilibrium level. … #2: labor unions A union is a worker association that bargains with employers over wages and working conditions. Unions often raise wages above the level that would prevail ...
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 6 The Economics of Labor Markets Chapter 19 of 36 Earnings and Discrimination Section 9 of 16 … Most actors earn little money and often take jobs such as waiters to support themselves. But famous actors like Johnny Depp earn millions of dollars for each film they star in. Most people who play tennis do it unpaid as recreation, but Serena Williams earns millions playing as a pro. Depp and Williams are superstars, and their great public appeal results in huge incomes. … It is not surprising incomes differ within occupations. Good carpenters and plumbers earn more than average ones. People vary in ability and effort, these differences lead to income differences. But the best carpenters and plumbers don’t earn the millions made by the best actors and athletes. … To understand the big incomes of Depp and Williams, we look at the special features of the markets for their services. Superstars arise in markets ...