Shocking Impact of Undocumented Immigration on American Workers’ Wages! Find Out Now!

In the realm of employment in the United States, a significant issue that often arises is the prevalence of people working part-time when they would prefer full-time positions. This group, known as those working “part time for economic reasons,” “involuntarily part-time,” or “underemployed,” has been a consistent presence in the workforce since 1994. The numbers peaked during the 2008-2009 Great Recession and again during the 2020 recession triggered by the SARS-CoV-2 (COVID-19) pandemic, with more than 10 million underemployed workers in the latter scenario.

1. Substitutability vs. Complementarity of Undocumented Workers and Native Born Workers:
   When considering undocumented (as opposed to foreign-born) workers and their impact on the workforce, it raises the question of whether they compete with or complement native-born workers. Insights from Torsten Slok/Apollo shed light on this issue.

2. Data on Complementarities in Immigrant Workers:
   Research by Calumi and Peri (2024) delves into the dynamics of immigrant workers and their effect on native-born workers in the US. By extending analysis to the years 2000-2022 and introducing innovative methodologies, they found that immigration had a positive and significant impact on the wages of less educated native workers, with no significant effects on college-educated natives. This research also indicated a positive employment rate effect for most native workers.

3. Impact of Undocumented Workers:
   Studies by Hotchkiss et al. (2015) and Albert (2021) shed light on the influence of undocumented workers on the labor market. Rising shares of undocumented workers were found to result in a slight increase in earnings for documented workers. Additionally, research exploring the labor market effects of both documented and undocumented immigration in a search model highlighted the complexity of job creation and competition effects on natives.

In conclusion, understanding the interplay between different segments of the workforce is crucial in shaping policies and strategies that cater to the needs of all workers. By acknowledging the nuances of immigrant and undocumented worker contributions, we can strive towards a more inclusive and equitable labor landscape.