Native-born workers may not be harmed by immigration if it

Question

Quizplus · Accepted Answer

Immigration can lead to an increase in the labor supply, which might reduce wages in the short term. However, if this increased labor supply leads to higher productivity and economic growth, it can increase the demand for labor, potentially raising wages in the long run. Moreover, an increase in the labor supply can lower production costs, leading to lower prices for consumers and potentially higher profits for business owners. This can increase the rate of return on capital, benefiting native-born workers who are investors or business owners.

Native-Born Workers May Not Be Harmed by Immigration If It