The Immigration Debate: Its Impact on Workers, Wages and Employers (page 1 of 12)
Published: May 17, 2006 in Knowledge@Wharton

Illegal immigration into the United States has sparked heated debate in Congress, roiled the two main political parties, and prompted hundreds of thousands of immigrant supporters to take to the streets recently in peaceful demonstrations nationwide.

The controversy picked up new momentum on May 15 when President Bush, in a televised address to the nation, called for a comprehensive approach to immigration reform. He said he would send 6,000 National Guard troops to four states along the U.S.-Mexican border beginning in June to provide intelligence and logistical support -- but not armed law enforcement -- to civilian border patrol agents. In addition to securing the border, Bush also said it was necessary for the House and Senate to pass legislation that would allow illegal immigrants who have lived in the United States for a long time to remain and be able to undergo a process to become citizens.

"There is a rational middle ground between granting an automatic path to citizenship for every illegal immigrant and a program of mass deportation," the president said. "That middle ground recognizes that there are differences between an illegal immigrant who crossed the border recently and someone who has worked here for many years and has a home, a family and an otherwise clean record." Meanwhile, Congressional leaders have said that they would like to send immigration-reform legislation to the president for his signature before the end of May.

At stake in the debate are the lives and livelihoods of as many as 12 million undocumented workers, the companies they work for, respect for the rule of law, and the job opportunities of millions of low-skill American citizens -- both native born and immigrants who became naturalized by going through the proper channels. The large number of illegal immigrants raises key economic questions: Do illegal immigrants depress wages paid to low-skill workers? Do they take jobs away from Americans? How dependent on undocumented workers is the U.
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