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Cracking Down on Illegal Immigration Will Boost Wages for Natives

Cracking Down on Illegal Immigration Will Boost Wages for Natives Cracking Down on Illegal Immigration Will Boost Wages for Natives

President Donald Trump signed so many executive orders on his first two days in office that many Americans were naturally left wondering how his policy changes would affect their everyday lives. One such question looms particularly large: If we deport illegal aliens, who will take their place in working low-skilled jobs?

Many seem to think that the economy is completely dependent on illegal aliens working low-skilled jobs. According to the Brookings Institution, for example, deportations would lead to job losses among illegal aliens and U.S. natives alike. The deportation of the former would reduce consumer demand, causing industries to scale back operations.

Similarly, the Center for American Progress argues that deporting unauthorized workers would immediately reduce the nation’s gross domestic product by 1.4% and ultimately reduce it by 2.6%, with cumulative GDP losses over 10 years amounting to $4.7 trillion. This policy, they argue, would both reduce national employment significantly and lead to a loss of almost $900 billion in federal revenue over the same period.

But Vice President JD Vance offered a different view in an October interview with The New York Times.

Vance argued against the notion that the U.S. relies on illegal immigrants for construction. Rather, he suggested, plenty of Americans are both willing and capable of taking such jobs if they were offered at living wages.

He also dismissed the idea that deportations would worsen the housing crisis, instead contending that removing illegal immigrants would free up housing supply, thereby potentially lowering prices.

Vance also emphasized that many currently unemployed men could be drawn back to the labor market with the removal of competition from illegal aliens, who are often willing to work for low wages and few benefits.

Vance’s explanation points to a much deeper truth: The labor market functions much like the market for goods. If apples cost more, more farmers likely would choose to grow apples. Similarly, if construction jobs paid higher wages, more Americans would likely pursue those positions.

As Vance pointed out, there have always been Americans willing to build houses. The key is offering wages that align with the labor demand to engage the available workforce effectively.

The same holds true for other roles often filled by illegal immigrants—roles such as maid, cook, maintenance worker or janitor. Currently, illegal immigrants’ willingness to work for below-market pay drags down wages for domestic workers, deterring those who would otherwise seek such positions.

Compelling research exists to support this position.

For example, some research suggests that illegal immigrants decrease wages and opportunities for U.S. natives even in industries not traditionally considered low-paying.

Many illegal immigrants naturally find employment in lower-paying, or “secondary sector,” jobs. Initially, this can stimulate growth in primary sector jobs for native workers. Businesses may expand to capitalize on the availability of cheaper labor, indirectly boosting demand for higher-skilled native employees.

However, as the number of illegal immigrants increases, some may transition into higher-paying “primary sector” roles. Over time, this may cause increased competition for primary sector jobs, potentially displacing native workers or decreasing available wages and opportunities.

For many—especially those with only a high school degree—this means a substantial decrease in wages. Economists have estimated this decrease of wages at anywhere between 0.4% and 7.4%.

Fortunately, Trump’s policies seem likely to provide some much-needed relief. Research suggests that Trump’s work to decrease illegal immigration in his first term coincided with a 3.2% real increase in median weekly wages for U.S.-born workers without a bachelor’s degree. At the same time, American labor force participation increased.

Trump has publicly said that his priority is deporting illegal immigrants with criminal convictions (of which an estimated 820,000 reside in the U.S.). The research suggests that removing these immigrants would not just improve public safety. It also would lead to increased wages for native workers working blue-collar jobs.

While some argue deporting illegal immigrants may harm the economy, the data suggests there’s more to the story. By cracking down on illegal immigration, we could increase wages and employment opportunities for lower-income American workers, better enabling Americans of all backgrounds to achieve the American dream.

Originally published by The Washington Times



This article was originally published at www.dailysignal.com

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