Lower wages are a feature of immigration expansion, not a bug

author Published by Jeremy Beck

Stop me if you’ve heard that immigration has no effect (or minimal effect) on wages. Yes, the last half century of mass immigration coincides with the stagnation of real wages for most workers, but you’ve no doubt read or heard that the two aren’t related. Increasing the supply of labor, we’re told, just doesn’t lower the cost, basic economics notwithstanding.

Every now and then, however, wages threaten to rise. The cry of “labor shortages” (omnipresent whether the economy is in a boom or bust cycle) grows louder. This is a serious problem, we’re told, despite the aforementioned wage stagnation. And the solution is more immigration, precisely because it does impact wages.

As The Wall Street Journal recently reported:

The ability of workers to secure outsize pay increases could depend on how quickly countries that have kept Covid-19 cases low can reopen their borders and encourage immigration. An influx of foreign labor would put downward pressure on wage growth.”

You don’t say.

JEREMY BECK is the Director of the Sustainability Initiative for NumbersUSA

Take Action

Your voice counts! Let your Member of Congress know where you stand on immigration issues through the Action Board. Not a NumbersUSA member? Sign up here to get started.

Action Board

Donate Today!

NumbersUSA is a non-profit, non-partisan organization that relies on your donations to works toward sensible immigration policies. NumbersUSA Education & Research Foundation is recognized by America's Best Charities as one of the top 3% of well-run charities.

Donate

Immigration Grade Cards

NumbersUSA provides the only comprehensive immigration grade cards. See how your member of Congress’ rates and find grades going back to the 104th Congress (1995-97).

Read More