2007 May 28 Monday
Canadian Study: Immigrants Lower Wages

Businesses would have us believe that the law of supply and demand in economics fails to work in the labor market. But a new study in Canada finds that an increased supply of labor from immigrants lowers wages of the natives.

Immigrants to Canada are depressing domestic wages by increasing the pool of people competing for jobs, according to a study released yesterday.

The Statistics Canada study found that when an influx of migrants raises the labour supply by 10 per cent, wages fall by between 3 per cent and 4 per cent.

Abdurrahman Aydemir, co-author of the Statscan study, said that doesn't mean new immigrants are necessarily finding jobs in their chosen field. "Even if they are sending in their résumés and applying, that increases competition and in turn wages."

The natives are gullible enough to get fooled by propaganda and to let their government and businesses to conspire to lower their wages.

The disproportionately large numbers of highly-skilled immigrants coming to Canada has had the biggest impact on the earnings of highly educated workers, the study said. Canadians with postgraduate degrees saw their real weekly wages tumble 7 per cent between 1980 and 2000. During that time, immigration helped boost the number of Canadians with more than an undergraduate degree by 5.7 per cent to 38.2 per cent.

Plus, you get to pay more for housing and drive on more crowded highways and breathe more polluted air.

Canada gets more skilled immigrants.

In 2001, roughly four in 10 people who came to Canada had more than an undergraduate degree, compared with about one in five in the U.S.

This probably isn't just due to Canada's points system. Canada has the advantage of not having Mexico on its southern border.

Share |      By Randall Parker at 2007 May 28 07:39 AM  Immigration Economics

Kenelm Digby said at May 29, 2007 4:45 AM:

Why anyone (even an economist) can possibly doubt the 'Law of supply and demand', which is really the only part of that subject that is worth a damn and is axiomatically, incontrovertibly true, to the extent that it is replicated in non-human systems in nature, and which doesn't really take to much of an abstract intelligence to appreciate, simply baffles me.

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