The Oz-onomics Podcast

Economic Effects of Immigration

March 1, 2020

A discussion of some of the economic effects of immigration.

Podcast by Shanette Lee



Kate: Hey everyone. Welcome to Oz-onomics, a podcast created for and by students in introductory economics classes at SUNY Oswego.

GABRIELLA: In this series, we'll have discussions about various economic principles and how they apply to our day to day lives.

KATE: Are you ready?

GABRIELLA: Let's go.


Hi listeners, This is Shanette Lee once again with another podcast. Today I will be talking about the economic effects of immigration. So just so happens that unauthorized immigrants created the demand for goods and services while an estimated 50 to 75% pay taxes. So because of cheaper labor, meaning they get paid less than what let's say you are or me will get paid. But while doing the same job at times. They contribute to lower prices in industries where they work, like restaurants, construction and agriculture. You actually see this happen very prominently at jobs, but it happens more when the immigrant is involved because there might be a language barrier. So you do see this, it just so happens that maybe you'll catch onto it. If you could communicate better. The relationship has been observed between immigration and the growth. Obviously it depends on many different variables like the skill composition. They are very hard working because in other countries they have no choice but to work super hard. We're a bit more spoiled here in America that most of us know and like to admit .The rate of assimilation, the distribution labor market consequences, the size of the immigration surplus, the potential human capital extremities and the longterm fiscal impact increasing deportation rates and tightening border controls, weakness like low skilled labor markets, increasing unemployment and native low skilled workers legislation instead decreases the employment rate of low skilled natives and increases income per native who would have thought benefits claim. Now you also see a lot of people like to complain about having immigrants in our country, but the benefits claim include like fiscal advantages, increase growth, domestic product per head already supplied a labor . Like I mentioned earlier, they've worked very hard. Improvements to the age structure, fears that large scale immigration might damage the interest of unskilled native workers are discounted. Immigration also has a net positive effect on combined federal, state and low budget, but not all tax payers benefit equally. In regions with large populations of the less educated, um, like low-income immigrants, let's say native born residents bear significant net cause due to immigrants use of public services, especially education. So this is where a lot of people agree with certain things, that are going on in the government because they just feel like ,since we live in America, there fore out people come first . I personally think everybody should be treated the same ...fairly. Some people have this vendetta against immigrants and they like to say l you know, we have to take care of our people first, which I could kinda sorta understand. But if we all are getting help and there is space to help immigrant, then I think we should do that. But people have a problem that the people of our country are getting denied certain things. But then again, they argue immigrants are coming from another country without earning it and you know, benefiting from the benefits we have. It also comes to the fact that immigration leads to more innovation, a better educated workforce, greater occupational specialization, better matching skills with jobs and higher overall economic productivity, you know, they come skilled, they come ready to work hard. They're not lazy like us. Sometimes they're plier than us, which is pleasant as well. Like Oh for customer service reasons. Immigration also has a net positive effect on, as I mentioned earlier, federal, state and local budgets. It's a good thing. And then it's just things that people don't like to face. Like the fact that let's say I'm working in a factory and then theres an immigrant working at the factory, they'll pay me my high rate , you know and they'll pay that person less because they feel as though that's what the person deserves or the person cant speak up for themselves. So it's kinda hard to pick a side, but they definitely have a great impact on our economy. In the terms of getting stuff done, like when they worked in the factory, when we have a lot of immigrants that happened to be mechanic, very hands on jobs is where we see a lot of immigrants. They make a great deal of a difference. In 2019, the labor force participation rate of foreign born adults was 65.7% higher than the 62.3% rate for the native born. And according to the United States Bureau of labor statistics, 27.2 million foreign born adults, 63.4% of the foreign born adults were employed that year compared to the 59.8% of the native born adults. it's clear to see immigrants hold jobs that are important to our economy. It's our communities, immigrant workers without a college degree. So like, it's helping them get what they have to do done is helping us progress with our economy. And then, you know, we're building things. personally live in New York. We need big buildings. We need, we need them. It's, they're, they're more of a positive impact than there are negative. so I hope I was able to bring clarity or teach you something that you didn't know about the situation. Thank you so much and have a great evening.


MICHAEL: There you have a folks on another edition of Oz-onomics, where economics becomes easier for Oswego students to understand where you get your money that you pay for your tuition worth. If you feel like being ahead of the curve, grab a seat, grab your phone, shift your fingers left and right. And download Oz-onomics on the podcast app. See you later.

The introduction to this podcast was provided by Kate Soanes and Gabriella Schaff. Michael Kolawale provided the outro. Music by Lobo Loco.

Show Notes


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