Texts: The H-2A visa program allows employers in certain industries to hire foreign workers temporarily if they show that they cannot find U.S. workers for the jobs. These foreign employees are still subject to the usual minimum wage requirements. A group of CEOs in a non-H-2A industry are claiming that the minimum wage is causing a shortage of workers and have lobbied for an expansion of the H-2A visa program to cover their industry. 2.1. Evaluate this claim. How will expanding the H-2A program help the industries currently not covered by the H-2A program? 2.2. Explain how a shortage of workers in their industry can be solved without an expansion of the H-2A program.
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The claim made by the CEOs is that the minimum wage is causing a shortage of workers in their industry. To evaluate this claim, we need to consider the factors that contribute to a shortage of workers. A shortage of workers can occur when the demand for labor Show more…
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Business leaders often say that there is a "shortage" of skilled workers, and so they argue that immigrants need to be brought in to do these jobs. For example, a recent AP article was entitled "New York farmers fear a shortage of skilled workers," and went on to point out that a special U.S. visa program, the H-2A program, "allows employers to hire foreign workers temporarily if they show that they were not able to find U.S. workers for the jobs." a. How do unregulated markets cure a "labor shortage" when there are no immigrants to boost the labor supply? b. Why are businesses reluctant to let unregulated markets cure the shortage?
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Many people think that immigration into the United States, because it causes competition for jobs, will lower the wage rates of U.S. workers. Yet, even though the United States admits hundreds of thousands of immigrants each year, the average U.S. wage has continued to grow, Can you explain why? Are there any groups of workers within the economy for whom the fear of lower wages is justified? Explain.
The demand for skilled workers in the United States has been increasing. To increase the supply of skilled workers, many argue that immigration reform to allow more skilled labor into the United States is needed. Explain whether you agree or disagree.
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