Immigrant workers are often willing to accept lower wages from "summary" of Issues in the Economics of Immigration by George J. Borjas
One of the key characteristics of immigrant workers in the labor market is their willingness to accept lower wages compared to native-born workers. This phenomenon can be attributed to various factors that influence the decisions of immigrants when it comes to accepting job offers. One reason why immigrant workers may be more willing to accept lower wages is because they often face limited job opportunities due to their immigrant status. As a result, they may feel pressured to accept whatever job is available to them, even if it comes with a lower wage. This creates a situation where immigrant workers are more likely to accept lower-paying jobs in order to secure employment. Additionally, immigrant workers may also be more willing to accept lower wages because they have lower reservation wages compared to native-born workers. Reservation wages refer to the minimum wage that a worker is willing to accept in order to take a job. Immigrant workers may have lower reservation wages due to factors such as their lower levels of education and skills, as well as their lack of familiarity with the labor market in the host country. Furthermore, immigrant workers may also be more willing to accept lower wages because they may have fewer bargaining powers in the labor market compared to native-born workers. This lack of bargaining power can be attributed to factors such as language barriers, lack of knowledge about labor laws and regulations, and fear of deportation. As a result, immigrant workers may be more likely to accept whatever wage is offered to them by employers.- The willingness of immigrant workers to accept lower wages is a complex phenomenon that is influenced by a variety of factors. By understanding these factors, policymakers and researchers can gain insights into the labor market dynamics involving immigrant workers and develop strategies to address the challenges faced by this vulnerable group in the labor market.
