Essay on Declining Wages & Jobs - 1980 to Present in the U.S.
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Essay on Declining Wages & Jobs - 1980 to Present in the U.S.
In the early 1900s, when immigration reached historically high levels, half of the growth in total U.S. population and in the labor force was due to immigration. In the seventies only about one-quarter of the growth in population and one-eighth of the growth in the labor force were due to immigration. In the eighties immigration was back up and accounted for just under 40 percent of the growth in population and for a quarter of all new labor market entrants. These proportions are approaching the earlier ones, not only because of the large number of immigrants, but also because of the declining fertility rate of American women.
In 1980 newly arrived immigrants from India or Iran earned 20 percent less than natives; newly arrived Mexican or Haitian immigrants earned 50 percent less. Compare this to immigrants from Sweden or the United Kingdom, who earned about 20 percent more than natives. The large disparity in earnings for various nationalities arises partly because skills acquired in advanced, industrialized economies (like the United Kingdom or Sweden) are more easily transferable to the American labor market. But another reason is that the typical worker who emigrates from, say, Sweden, differs substantially from the typical worker who leaves Mexico. The Swedish government taxes skilled workers heavily and subsidizes the unskilled. Hence Sweden suffers from what is called a brain drain: skilled Swedes migrate to the United States. In contrast, there is a great deal of income inequality in Mexico, where unskilled workers have few economic opportunities and skilled workers are well rewarded. Therefore, it is the unskilled who wish to emigrate. Because incomes are highly unequal in many of the less developed countries that are the source of U.S. immigrants today, current waves of immigrants are less skilled than earlier waves.(Abowd, 1991)..........
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