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HUMAN CAPITAL
Immigration Policy and Pay Scales
Posted by Stephen Taub | CFO.com | US
January 5, 2006 1:21 PM ET
The Chamber of Commerce's support for more-open borders, using the argument that there is a growing worker shortage, brings to mind another fallacious notion about immigration and employment — that we need to allow illegal immigrants into the country so they can hold down the jobs that Americans presumably don't want. Too bad it's only half-true.

What unskilled Americans balk at are the wages that many immigrants are willing to accept for menial jobs. However, if the United States got tougher with illegals and forced employers to hire at home, employers would be forced to raise the pay scale to the level that the available labor pool would find palatable. Then, presto, these positions would still be filled, but with Americans who, perhaps wanted those jobs all along.

Yes, wages and thus employer costs would go up, but a restrictive immigration policy drives up costs, too. These issues are worth debating; I just wish the business lobby would agree that this isn't a one-sided issue.
Comments (2)


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The US law makers and immigration authorities should be able to distinguish the grain from the chaff.

I think that the United States should: a)encourage an immigration policy that allows market competitive pay scales for talented immigrants and an easier transition to becoming permanent residents. This will enable the US to build on its position as a global super power; and b)stricter laws to weed out illegal immigrants.
Posted by Chandrasekar Venkataraman | January 07, 2006 09:07pm

Currently, I agree with the previous comment: it states more or less as things go by in my country too (Italy). However you should consider the idea of giving a temporary visa (3months to a year) to illegal immigrants who already are or anyhow come in the country to honestly search-and-find a job there.Charities could then take a part providing for those people basic needs in the meantime.Best regards.
Posted by giovanni battista forlino | March 05, 2006 12:52pm

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