Implications of U.S. Immigration Policies for North American Economies

Implications of U.S. Immigration Policies for North American Economies

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We develop a four-sector (labor-intensive agriculture, capital-intensive iphone 14 price texas agriculture, service & construction, and manufacturing) general-equilibrium model of North American countries to analyze the effects of tighter U.S.immigration policies.Results show that these policies erode the comparative advantage of U.

S.labor-intensive agriculture, causing U.S.production and exports to fall and other countries to expand their exports to the United States.

In Mexico, low-skilled labor demand in labor-intensive agriculture increases as production rises.The effectiveness of U.S.tighter immigration policies depends on the substitutability between U.

S.domestic and here undocumented workers.Immigration policies exacerbate the wedge between Mexican low-skilled wage rate and the undocumented wage rate, intensifying the underlying cause for unauthorized entry.