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Thursday, July 12, 2012

Research Paper on the Economic Impact of Immigration

Research Paper on the Economic Impact of Immigration

The United States has served as a rallying point for people from most developing countries worldwide. In the 2010 census of Department of Homeland Security, there had been 1,042,625 immigrants obtaining legal residency, most were from Asia. This number of immigrants only accounted for those who were legally documented.

According to Hatton and Thompson (1998), as cited by the Economic History Association (2010), there are eight factors which affect immigration. Among the eight, the most prominent would be the gap or difference in real wages existing between the country of origin and the US. The Economic History Association (2010) added that the larger the difference in real wage between US and the country origin means a higher chance of immigration will be since they will earn higher with the movement. 

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It is also noted in Economic History Association (2010) that immigration has benefits to the US Economy in general. Based on past and recent studies, US have attracted many immigrants with inventive or scientific nature. Aside from this, immigration will also decrease the price of certain commodities. It is because immigration will cause market expansion of certain commodities and by doing so, the firm will have a decrease on its average cost. Furthermore, immigration will also help in raising the standard of living in the United States because most of the immigrants go to the United States at a working age. Moreover, it is also pointed that, though immigrants may also add government expenditures in certain services, immigrants increase government income through the additional tax they pay, and illegal immigrants are not an exemption because, as they may not pay income taxes, they pay taxes directly through the goods and services they avail. 

Clearly, immigration has its negative implications but its positive effects are more pronounced especially in the case of the United States as it is branded sometimes as the country of immigrants. The President and the government in general must weigh its effects into their own people and the economy in general. By doing so, it will not only benefit the internal health of the United States or any other country in particular, but it will also induce good relationship towards the country from where these immigrants rooted from.


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