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Old 05-15-2008, 06:40 AM
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Do you have a study that proves that the use of cheap labor domestically correlates to lower consumer prices? And those savings outweigh the overall increase in the cost of the illegal labor being here?

Illegal Immigration and Resource Allocation
Slobodan Djajić
International Economic Review, Vol. 38, No. 1 (Feb., 1997), pp. 97-117
http://www.jstor.org/sici?sici=0020-...3E2.0.CO%3B2-T

The study found that an increase in the employment of illegal immigrants in the short-run had positive impact on high-skilled workers. However, it might have positive or negative impact on low-skilled workers depending whether they were employed in the industries that the illegal immigrants compete.

In the long-run, with interoccupational mobility of native workers, an increase in the inflow of illegal foreign workers had no effect on the wages of the natives. In addition, all native workers enjoyed an increase in real wages: skilled workers benefited from the reduction of price of intermediate goods employing illegal immigrants, low-skilled workers benefited from the expansion of the economy leading to an increase of demand for unskilled workers.
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