Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue

Exercise 5

Suppose initially that immigrant labor and native-born labor are complementary resources. Explain how a substantial immigration might change the demand for native-born workers, altering their wages. (Review the relevant portion of Chapter 12 if necessary to help answer this question.)Next, suppose that new immigrant labor and previous immigrant labor (not native-born)are substitute resources. Explain how a substantial immigration of new workers might affect the demand for previous immigrants, altering their wages.