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how do illegal aliens affect the ecomony? examples please...

2006-12-08 04:15:29 · 5 answers · asked by Anonymous in Social Science Economics

5 answers

One effect illegal immigrants have (assuming they are low skilled) is that they actually drive UP the wages of the native skilled workers. The reasons for this is that low skill workers are complements to high skilled workers.

2006-12-08 09:01:15 · answer #1 · answered by Understood 3 · 0 0

there are several main effects of illegal immigrants:
- as I saw the other answer - they don't pay taxes - the Government loses from that
- as illegal immigrants they do not dare to want as much as the legal citizens of the country would normally get for the same job - this means, all other conditions being equal, companies pay less and become more competitive; however, this exerts downward pressure on the salaries of normal citizens;
- usually illegal immigrants do the dirtiest, haviest and least paid job in any society. And usually these jobs are avoided by the locals just for the same reasons, so in this respect - illegal immigration has a positive influence over the economy, making it work closer to its full capacity
-again regarding the labor market - while the illegals do the least paid and least productive work, the locals are occupied with more advanced, productive and better paid jobs - the result from this - constant push to more efficient economy and finally growth
- however there are some negative effects for the economy - increased crime level (= lost productivity and resources) is just one of them.
The actual result for a given economy depends on how big is the possitive and the negative side, measured in money, time, productivity, other resources - how much of these we lose and how much we gain due to illegal immigration

2006-12-08 12:39:46 · answer #2 · answered by here_4_ya 2 · 0 0

1. They take jobs (usually) at the lower end of the wage scale, often at lower wages than a citizen would accept. This keeps the "price" of unskilled labor low and artificially depressed relative to other wages in the economy. That means that as other wages increase at a certain rate, wages to illegals do not. Other low-end wages will grow more slowly as a result. That means that if you are a carpenter in an area with many illegals, your wages will stay low because there are illegals working for less than you would be willing to accept. If the illegals were out of the equation, lower end wages would be forced up as a result. Mind you, this would also increase the prices of goods and services that depend on illegal labor today.

2. They use public services without contributing to them. Plenty of citizens also do this, but illegals "utilize and do not pay" for medical and educational services at a much higher rate than citizens. This costs every taxpayer and it costs every person who waits in line at an emergency room.

3. Finally, they have kids who (ridiculously) are automatically US citizens just because they were born within the confines of US borders. Those kids use up seats in classrooms and place higher demands on teaches because of language barriers, greater need for subsidized meal programs, and the like.

2006-12-08 12:25:19 · answer #3 · answered by Mike K 3 · 0 0

They can affect the economy favourably that is they bring their skills, experiences etc to the economy the other country which they left may experience a brain drain. On the other hand they fill up employment that could have be utilised by nationals of the country.

2006-12-08 13:42:16 · answer #4 · answered by Ans 3 · 0 0

They don't pay tax
Companies can lower the operation costs

2006-12-08 12:18:35 · answer #5 · answered by Astro newbie 3 · 0 0

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