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If the United States decided to reduce immigration substantially, the economic losses would likely be small relative to the overall economy. If the United States decided to increase immigration substantially, the U.S. economy certainly is large enough to afford some additional assistance to low-wage workers or to local governments that might be adversely affected by immigration. Whether immigration levels are increased, decreased, or left the same, the quality of the debate over immigration policy would be improved by an explicit recognition of who receives economic benefits from immigration and who bears its costs.

Collective bargaining in wisconsin

Should we end collective bargaining rights for government employees? In an effort to reduce the budget deficit, a contentious Wisconsin law prohibited most public employees from collectively bargaining on anything except wages. Legislators in Wisconsin argued that public safety is so important that public safety workers should be exempted from this. They could not risk firefighters and police going on strike. All firms and employees know that pensions and benefits are expensive; and there was a $3.6 billion budget deficit in Wisconsin that Governor Walker and legislators wanted to decrease. A lingering question is: should the unions have been more willing to shoulder a greater burden of the cost of those benefits? That question suggests that it is the cost, not necessarily the role of the union itself, which is the problem. After all, unions were founded to reduce the disadvantage that single employees face when bargaining with employers. Because so many government employees are union members, collective bargaining is even more important for them.

Ultimately, the benefit of unions is in the impact they have on economic productivity and output. The more productive the union workers become as a result of collective bargaining, the better off the economy will be.

The long-term repercussions of the Wisconsin law have yet to be realized. As a result of this bill, wage increases higher than the rate of inflation for Wisconsin public sector employees must be voted upon. Imagine if you are working for the Wisconsin government, and are able to find a higher-paying job in the private sector. What will you do? If you decide to leave because your options are better elsewhere, then the government must replace you. How will the government find workers to replace you? For some sectors of the government, reduced numbers of workers may mean greater efficiency. For other sectors, though, reduced numbers of government workers may mean reduced services.

Key concepts and summary

The recent level of U.S. immigration is at a historically high level if measured in absolute numbers, but not if measured as a share of population. The overall gains to the U.S. economy from immigration are real but relatively small. However, immigration also causes effects like slightly lower wages for low-skill workers and budget problems for certain state and local governments.


Clune, Michael S. “The Fiscal Impacts of Immigrants: A California Case Study.” In The Immigration Debate: Studies on the Economic, Demographic, and Fiscal Effects of Immigration , edited by James P. Smith and Barry Edmonston. Washington, DC: National Academy Press, 1998, 120–182. http://www.nap.edu/openbook.php?record_id=5985&page=120.

Smith, James P. “Immigration Reform.” Rand Corporation: Rand Review . http://www.rand.org/pubs/periodicals/rand-review/issues/2012/fall/leadership/immigration-reform.html.

U.S. Department of Homeland Security: Office of Immigration Statistics. “2011 Yearbook of Immigration Statistics.” September 2012. http://www.dhs.gov/sites/default/files/publications/immigration-statistics/yearbook/2011/ois_yb_2011.pdf.

Questions & Answers

current economic plans (MDGS) needs
Ajijola Reply
I don't know what is happening
What is economic
Joeali Reply
What is the importance of study economics
Economic is the study of how humans make decisions in face of sacristy
economics is the study of how humans makes decision in the face of scarcity
economics is the study of human behaviour when faced with difficult situation example when goods and services are scarcity.
what is Economic
Dauda Reply
what is 4ps of economic?
thomas Reply
production place Price product
Criticism of elasticity
Siddikur Reply
what is unemployment
Gyamfi Reply
ohk thanks
why is unemployment rapid in the country
I need more explanation
what is unemployment
Munanag Reply
not working
some one who is willing qualified to work but can't find job
Bethel...explain? please
some one who is willing to work but can't find job
Yes true
which one please
unemployment refers to the ability for someone who is capable and willing to work but could not find a job..
some one who not able to find a job
please what is the secret of learning?
What is stock market?
JOHN Reply
explain the various types of cost curve
Ruth Reply
Short-run average fixed cost (SRAFC) Short-run average total cost (SRAC or SRATC) Short-run average variable cost (AVC or SRAVC) Short-run fixed cost (FC or SRFC) Short-run marginal cost (SRMC) Short-run total cost (SRTC)
what's economic development and growth
Popoola Reply
what do you understand by Ceteris Paribus?
Gabriel Reply
the external factor will remained constant, except the price
everything being equal
explain the uses of microeconomics
Nikita Reply
uses of microeconomics
Adam Smith's definition of economics
Sylvia Reply
what is economic deficit
this is a situation whereby a nation's outcome or available resources are not enough to the people thereby causing scarcity
prices of Quality demanded is equal to Quality supplied
it's quantity demand and quantity supplied that's called equilibrium
they deal With prices
define the elasticity
explain different types of elasticity
oops 😬 you are right you talk about quality I tell about quantity
elasticity is the measurement of the percentage change of one economic variable in response to a change in another
Cross Elasticity of Demand (XED) Income Elasticity of Demand (YED) Price Elasticity of Supply (PES)
anything else?
I need to know everything about theory of consumer behavior
Romy, what is microeconomic?
What is Economic please
Thomas, microeconomics is the study of how consumers, workers, and firms interact to generate outcomes in specific markets
Dauda, economics is the study of people and choices. it is on one side the study of wealth and on the more important side, a part of the study if man
How does one analyze a market where both demand and supply shift?
Gabriel Reply
That's equilibrium market
but an equlibrum can appear twice on the same market... both in Movement along the Demand/supply curve of shift in the Curve
I Mean on the same curve..
how can consumer surplus be calculated

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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