January 14, 2004
Immigration and Unemployment
A link to a recent exchange on the matter of the benefits and drawbacks of immigration for the employment situation in the technology sector.
In summary, it is sometimes stated that since smart immigrants create jobs in the technology sector, their presence is a net benefit. However, I differentiate between the job-creating section of immigrants (the research-oriented/business-savvy portion) and the rank-and-file.
If the members of an ethnic group X create C(X) jobs, but take N(X) jobs then their contribution is positive if C(X)-N(X) is positive. Otherwise, their contribution is negative for the native population, since they take up more jobs than they create.
A government is responsible for the welfare of its citizens. Therefore, it is the government's business to cut back on N(X) in a smart way, retaining the job-creating portion of X and discarding the rank-and-file and replacing it with its own citizens.
However, if companies have to hire natives with higher pay, then many of them will be in a tight spot and will have to adjust or shut down. This will however be a temporary phenomenon as the successful companies who make the transition will replace the cheap foreign workforce with increased automation.
Posted by Dienekes at January 14, 2004 11:54 PM | PermaLink"If the members of an ethnic group X create C(X) jobs, but take N(X) jobs then their contribution is positive if C(X)-N(X) is positive."
This sounds logical for the first time, but if you think about it, it isnt.
Because how can you determine that ethnic group X created how much jobs?
I mean if a member of group X make up a business or innovation, than he in person is creating jobs, ok, but is that really something you can attribute to the group?
Because if this member of group X wouldnt have done it, probably another one of the native population would have done it. You cannot know...
Or the administration would have done more for the native people that they can create new business, or the payment and rights for workers and native businessman would be better ones...
Maybe they would improve education and help for the uprising of healthy children etc...
So saying that, you would assume that the immigrants (at least the successful ones which probably creating jobs) are irreplaceable which is of course a reckless assumption.
So such a theory sounds nice at the first look but it cannot stand a second one IMO.