I’m Confused!

Haven’t we been told over and over and over again that higher levels of immigration do not lower the wages of American workers? So what’s this I read in Politico:

President Donald Trump’s harsh criticism of immigration programs and Congress’ refusal to lift a cap on work visas meant many seasonal businesses had to hire American this summer — and pay their workers more. That’s good news for Trump, for U.S. workers, and for supporters of Trump’s “American First” agenda, but business groups complain that increased spending on wages will ultimately cost jobs and sap company profits.

Maybe someone should write a paper entitled “The Labor Demand Curve is Downward Sloping.”

 

Author: George Borjas

I am a Professor of Economics and Social Policy at the Harvard Kennedy School.