Class Notes (836,580)
United States (324,591)
Economics (520)
CAS EC 102 (215)
Lecture 3

PM Lecture 3 Jobs & Pay

2 Pages
Unlock Document

CAS EC 102
Jay Zagorsky

PM Lecture #3: Jobs & Pay Saturday, March 22, 2014 1:45 PM Joseph Alois Schumpeter - "Capitalism, Socialism and Democracy"explains how jobs are destroyed when new ideas create new industries ○ Waves of change destroysome jobs and create new ones at the same time Immigration - Three ways to come legally ○ Family reunification (66$%total)  Unmarried children of US citizens and their children  Spouses and unmarried children of alien residents  Married children of US citizens and their spouses and children  Siblings of US citizens over the age of 21 and their spouses and children  Parents of either ○ Refugees and asylum seekers (16%)  Refugee: Typically someonefleeing from war  Asylum: Typically someonewho is persecuted by gov't or society  In 2012,three big refugee groups came to the US: Burma, Iraq and Bhutan ○ Employmentbased (< 13%)  Priority workerssuch as nurses  Professionalswith advanced degrees or aliens of exceptional ability  Skilled workers, professionals and unskilled workers  Employmentcreation such as investors - Illegal immigrants ○ In 2012,located over 640 people, most of were from Mexico and others were from Guatemala, Honduras and El Salvador ○ Latest gov't estimateis 11.5 million of which 6.8 million were Mexicans  Primarily a problem in California (2.8 million) and Texas (1.8 million) Benefits of Migration - Higher wages - More opportunity for advancement - Lower taxes - Better opportunities for children - Better healthcare - Better education - Lower chance of violenceand other crimes - Religious, sexual and political freedoms Costs of Migration - Travel costs - Border crossing costs - Resettlementcosts - Opportunity costs - Non-economiccosts - If NPV of home earnings is less than (NPV new earnings - Migration costs,) then it is efficient to migrate Low Skill Workers - Increase in number of workersshifts the supply, which makes the wage lower High Skill Workers - Brain Drain: Developing countries often lose large amounts of high skill talent to developed countries - High skilled workers shifts the supply curve, but also shifts the labor demand curve, making the new wage higher new wage higher Krugman's Summation of Impact - New benefits to the overall US economyfrom immigration are small ○ Immigration since 1980has raised total incomeof Americans by fraction
More Less

Related notes for CAS EC 102

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.