When immigrant labor is complementary to native labor in the production process, a more open immigration policy will likely result in all but which of the following?
A)Firms will value native labor more highly.
B)The labor demand curve for native workers shifts out.
C)Lower wages are paid to native workers.
D)Overall economic efficiency increases.
E)Overall native employment increases.

Question

Quizplus · Accepted Answer

When immigrant labor is complementary to native labor, a more open immigration policy can increase overall economic efficiency, increase overall native employment, shift the labor demand curve for native workers outwards, and increase the value placed on native labor by firms. However, lower wages may not be paid to native workers as immigrant workers may also help to lower the cost of production, resulting in higher profits for firms.

When Immigrant Labor Is Complementary to Native Labor in the Production