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pearhare414Lv1
29 Sep 2019
David Card argues that as unskilled immigrants move into the US, the US capitalists make more profit. The US capitalists reinvest the profit which increases US labor productivity in general. If labor productivity goes up, demand for US labor goes up, which, in turn, increases US wages of the unskilled workers. Is this really a trickle downâ theory of wage increase due to higher profit? Will unskilled workers' wages necessarily increase under this scenario?
David Card argues that as unskilled immigrants move into the US, the US capitalists make more profit. The US capitalists reinvest the profit which increases US labor productivity in general. If labor productivity goes up, demand for US labor goes up, which, in turn, increases US wages of the unskilled workers. Is this really a trickle downâ theory of wage increase due to higher profit? Will unskilled workers' wages necessarily increase under this scenario?
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0
watching
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Chika IlonahLv10
29 Sep 2019
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