Economic Effects of Illegal Immigration in Los Angeles, California

3432 Words Oct 15th, 2006 14 Pages

Purpose of Study
Estimates state that over 1.2 million people immigrate to the United States each year, thereby thrusting the issue of illegal immigration to the forefront of today news headlines. From an economic standpoint, the effort to absorb illegal immigrants often negatively impacts cities as well as the entire country. This paper addresses the negative economic outcome of illegal immigration in the city of Los Angeles, California through the exploration of studies conducted and statistics available on the issue of illegal immigration. An effort will be made to determine whether there is negative fiscal impact on the labor market, the tax structure,
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(Simon, 1999)
A study of the Los Angeles hotel industry performed by the General Accounting Office in 1988 revealed that immigrant workers that are willing to accept sub-standard wages now perform many jobs that were performed by U.S. citizens in the past. This study also reveals efforts by some hotel owners attempting to dissolve unions and replace those workers with immigrant workers. It should also be noted that most immigrant entrepreneurs are not willing to hire U.S. citizens, while the state and federal civil-rights agencies do not take any interest in this problem. (Matloff, 1995)
Various other studies show similar displacement of U.S. citizens within other industries. Jack Miles of the Los Angeles Times has also discovered that many jobs are being taken over by the Latinos. Since the late 1980s in spite of available labor the fast food industry employs foreign workers and may sponsor them for immigration and work visas. This is because most employers desire cheap and compliant labor. However, low wages are not the only factor; the news of job vacancies is spread by a tight social network among the immigrants thus removing the need to advertise for job openings by the employers. Richard Rothstein, a columnist for the Spanish-language ‘La Opinion' states that the immigrants from the same villages in Mexico and, El Salvador or China seem to be employed in the garment districts of Los Angeles, New York, or Miami. Rothstein also states that when such

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