Asked by Nishallinee Shanmugam on Apr 26, 2024

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Explain the reasoning behind why employment could increase for domestic-born workers if immigrant workers become complementary resources rather than substitute resources.

Complementary Resources

Resources that are used together in the production of a good or service, such that an increase in the price of one leads to a decrease in the supply of the other.

Substitute Resources

Alternative resources that can be used in place of another in the production process, often in response to changes in price.

Domestic-born Workers

Employees who are born in the country where they are working, as opposed to foreign-born workers.

  • Explain how various kinds of employees complement each other within the framework of immigration.
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MC
Mikelle CarterApr 29, 2024
Final Answer :
Many immigrant workers and domestic-born workers are complementary resources rather than substitute resources. When that is the case, the lower wage rate resulting from large-scale immigration reduces production costs, creating an output effect that raises labor demand for certain domestic-born workers. For instance, the large number of immigrants in the home construction business lowers the cost of building homes, increasing the number of homes built. This results in an increased demand for domestic-born residents who produce home building supplies.