Illegal Immigration and the Wage Gap

There is a close long-term correlation between low-skill wages and illegal immigration. An influx of low-skilled labor drives down wages at the bottom of the income scale, aggravating the wage gap and social divisions, providing fodder for left wing demonization of the prosperous and successful.

The normal equilibrating capacity of a market economy is short circuited when the influx of low-skill illegal immigrants is nationwide. If American workers could easily escape to another country offering higher wages, then wages in the USA would quickly recover from a surge of immigrant workers, and employers would gain only a short-lived benefit.  So, it might not be worth paying off politicians to import cheap labor from poor countries.

  • Norman_In_New_York

    Illegal immigrants are being paid off the books, which means that employers are illegally evading payroll taxes (such as Social Security). Send enough of them to jail for that and the problem is solved.