ECON 4692 Senior Economic Seminar Discussion
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
ECON 4692 Senior Economic Seminar Discussion
How and to what extent do non-US citizens contribute to the Country’s GDP
My research topic focuses on non-US citizens and their contribution to the US GDP in state level. In essence, this is a very critical study. It is because the study seeks to address one of the most controversial issues in the US today. Primarily, there has been an influx of immigrants. Consequently, there are those who believe that the immigrants have less impact on the US economy, which should stop them stay in the US. On the other hand, there are those who believe that they drive the economy to a great extent, which should encourage more immigrations. The study, therefore, seeks to unearth the role of the immigrants to the economy of the US. I will hypothesize that non US Citizens contribute significantly to the US GDP and make it growth.
The paper will be addressed through extensive research. In essence, this will involve looking at past studies and the findings that they have made towards the issue of immigration and how it contributes to the states of US GDP growth. It will also give top economists in the country analysis of how immigration has affected the economy of the US. They will be keen to explain how the various economic theories such as the Keynesian, monetarism among others have played in the economy. The findings of this research are critical to policy formulation. First, it will give room to make recommendation on the ongoing public debate on immigrants. Moreover, it will be easy to offer advice on whether the US should regulate the number of immigrants getting into the US annually, since president trump tried to cut down the number of immigrants. Secondly, the findings will be useful to the economists. They will be able to analyze the wage trend and thus advise on wage rate of the US.
The following study is quite important to various facets of people in the US Economy. It is important to point out that the risk of immigration tends to draw more from people who are entrepreneurial oriented. Currently, while the immigrant population only makes 14% of the US citizens, most of them play a critical role in starting up several businesses within the country (Giovanni, 2016). There are those who also take part in various employment opportunities. This is besides the huge number of international students. Consequently, their presence has been associated with higher wages, higher rate of productivity and lower employment besides an escalated female participation in the labor market. It, therefore, denotes a positive economic growth. Moreover, the new analysis point out to the fact that an increase in population growth enhances economic development. For instance, there are economists who argue that for every 1% rise in population, there is a similar 1.15 percent rise in the G.D.P (Giovanni, 2016). However, the need to establish if the immigrants form part of the population rise is key in the US. In essence, it gives room on focusing on complementarities and substitutional of the immigrants as a source of labor in the US. The findings is therefore relevant in informing the decision making process on immigrants and the nations GDP. Further, it gives room to explore how consumption and export ultimately affect the country’s GDP. It has often been assumed that influx of immigrants escalates the utility of basic goods and services. The study, therefore, give opportunity to test the economic concept associated with rise in GDP.
Literature Review
Friedberg& Hunt (2005), seek to establish the popular view that immigrants have a large adverse impact on the state of wages and employment opportunities in the society. He, however, notes that there are no literature materials that support this view. Nevertheless, various economic theories and empirical estimates point out to the fact that immigration has limited impact on the labor market of the natives. He analyzes the monetarism and Keynesian economic model. In essence, it emanates that there is no proof of any significant economic decline in the employment of the natives. The findings from the US and other countries indicate that when there is a 10% rise in the number of immigrants, the native wages reduces by 1% only (Friedberg&Hunt, 2005). Moreover, those native who fail to get employment do not suffer. The study therefore reaches a conclusion that the effect of immigrants’ on the income of the native is largely determined by the human capital features of the immigrant. This study is quite significant to my topic. In essence, it argues that immigrants have little effect on the income of the native. In my topic, I would like to establish the extent of economic contribution of the non US citizens. Consequently, this research offers background information on the immigration and how it affects the wages of the natives. It, therefore, gives room for the present study to be carried out against the lens of wages and income of the ordinary native.
Further, Giovanni (2016) focuses on the subject of immigrants and their effect on productivity and labor market. Productivity and labor market are critical economic concepts that determine market performance. He notes that since time memorial, immigration has been the cause of the rise of human population. He then examines the trend on immigration in the last four decades. His findings reveal that both college and non-college people have been migrating from non-rich nation to rich nations. He then notes that to understand the economic impact of immigrants one must focus on the specific skills that they bring to the market. He outlines the need to admit existence of complementarities and substitutional that exist between immigrants and natives in seeking jobs. The immigrants have been essential in enhancing productivity. Moreover, their availability has increased the labor market to a great extent. The United States has a competitive and flexible labor market. Consequently, the immigrants are able to find a niche. This paper is quite relevant to my topic of research. In essence, it provides primary information on the economic concept of productivity and the labor market. The performance of the labor market determines the economic situation of a country. Consequently, it will be interesting to find out the current labor market in US and which population drives it.
Finally, Borjas (1995) explores the economic effect of immigration. In essence, he investigates whether immigrants pay their way into livelihood. He notes that immigrants benefit extensively from the natives and the features put in place. They benefit mainly because of the production complementarities that occur between the immigrants and other factors of production. He therefore suggests that the benefits are massive when the immigrants are greatly distinct from the native input. The evidence he provides therefore emphasizes that economic benefit of immigration is very small. Nevertheless, he makes a suggestion that US can benefit economically if they put up an economic policy that attracts more skilled workers.
The article is quite relevant to my study. In essence, I would like to consider the type of Non US citizen, their relationship to labor market and how they contribute to the country’s GDP. In essence, I had not thought that the contribution to the economy can be distinguished by the aspect of whether the population is skilled or not skilled. The current study gives room to analyze economic contribution of a skilled vs. unskilled non US citizen used in the US economic environment. The article therefore offers foundational information for my research paper.
Works Cited
Peri, Giovanni. “Immigrants, Productivity, and Labor Markets.” The Journal of Economic Perspectives, vol. 30, no. 4, 2016, pp. 3–29. JSTOR, www.jstor.org/stable/44028256.
Borjas, George J. “The Economic Benefits from Immigration.” The Journal of Economic Perspectives, vol. 9, no. 2, 1995, pp. 3–22. JSTOR, www.jstor.org/stable/2138164.
Friedberg, Rachel M., and Jennifer Hunt. “The Impact of Immigrants on Host Country Wages, Employment and Growth.” The Journal of Economic Perspectives, vol. 9, no. 2, 1995, pp. 23–44. JSTOR, www.jstor.org/stable/2138165.