Labor Market, Wages, and Income Inequality

Labor Market, Wages, and Income Inequality
The use of immigrant labor is becoming increasingly popular in the United States. As a result of this occurrence, it has had a significant impact on wages, labor supply, and labor demand. On a microeconomic scale, some individuals benefit for the increased prevalence of immigrants and low-skilled workers. Others, however, have experienced negative microeconomic impacts as a result of this occurrence. A recent article that supports these findings is titled “The Immigration Cops go after a Dairy Farm” by Post (1). This article will analyzed with some microeconomic concepts and theories discussed in class.
Article Summary
The article titled “The Immigration Cops go after a Dairy Farm” by Post discusses how many farmers benefit from the use of immigrant, low-skilled labor (1). Simply, in the article, Post reveals that due to the nature of work in agriculture, many low-skilled Americans are not able to handle the job responsibilities or choose not to work in an agriculture environment (1). This places farmers in a precarious situation. Although there is demand for the labor, the labor supply is not available to them unless farmers make the decision to hire immigrant, low-skilled labor (Post 1). This is the primary reason as to why farmers, like the dairy farm discussed in the article rely so heavily on immigrant, low-skilled workers. As an added bonus, these farmers have experienced reduced labor costs when utilizing immigrant, low-skilled workers. As the government places a stronger emphasis on outlawing immigrant labor, farmers fear it will have negative implications on a microeconomic and macroeconomic level. In addition to putting farmers at it disadvantage, reductions in immigrant workforces will have a negative impact on wage equilibriums, labor demand, and labor supply within the agriculture industry (Post 1).
Who Benefits from Immigration of Low-Skilled Workers?
One microeconomic...