Consider the possible effects of a\"guest worker\" program like the one proposed

Question

Consider the possible effects of a"guest worker" program like the one proposed by President Bush inJanuary 2004. According to research by the Pew Hispanic Center,"the undocumented population of the United States now numbersnearly 11 million people, including more than 6 million Mexicans"(Passel, Jeffery S. "Estimates of the Size and Characteristics ofthe Undocumented Population," March 21, 2005.http://pewhispanic.org.). Mexican workers pay large sums--sometimesthousands of dollars--to "coyotes" who smuggle them across theborder. A guest worker program would allow a certain number ofMexicans to legally work in the United States for a set period oftime.

Explanation / Answer

This would increase the number of unskilled laborers in the US market.  Thus, in a basic supply and demand graph for unskilled labor, supply would increase whilst demand would remain the same.  The wage for unskilled labor would decrease.  No changes would be present in the graph for skilled labor, so wage would remain constant.  Thus, the income inequality would increase as the difference in wages would increase.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.