LOW WAGE WORKERS

The Effect of Hiring Low Wage Foreign Workers Instead of Local Workers

Introduction2

Discussion2

Advantages of Hiring Cheap Labor4

Disadvantages of Hiring Cheap labor5

True Implication of Hiring Cheap Labor6

Foreign Worker's Controversy in USA7

Foreign Worker's Impact on the Local Labor market8

Conclusion12

References13

Introduction

Foreign workers constitute of an important and a substantial part of the workforce in some of the developed economies of the world, such as USA Gulf countries and Singapore (Dao, 2012). However, the true implication of the endorsement of foreign workers is still debatable. The induction of foreign workers presents both a favorable, yet adverse for the host country. The true picture is fairly understudied, thus this paper seeks to explore the advantages and disadvantages of hiring cheap labor force. Also it sheds light on whether the inclusion of foreign labor force actually helps save the cost to the company, or does it increase the cost through the greater administration, supervision and training cost involved. Lastly, the effects of cheap foreign labor on the local labor force are studied in detail.

Discussion

Today, numerous countries are encountering impressive inflows of foreign workers. Outside laborer inflow impacts appropriating countries in a mixture of ways. It influences not just local worker employment, and yet total supply through progressions in employment and total request through progressions in private and public using (Mao, 2010). In this way, dissecting the effect of foreign worker inflow on the getting nations has ended up being a vital financial issue.

In spite of the fact that conclusions relating to the impacts of foreign worker inflow are not uniform, it is frequently contended that the negative impacts are bigger than the positive impacts (Gatti & Brodman, 2010). Numerous nations are endeavoring to lessen the inflow of foreign workers. For this reason, they are mostly bringing about immigration control laws and government regulations. Then again, such measures are not dependably successful in decreasing the inflow since laborers are moving crosswise over diverse nations to look for better working conditions and it is extremely demanding to control specialists' reasonable conduct (Pandya, 2010).

This intimates that the outside laborer inflow can't be effortlessly regulated. At that point, if foreign worker inflow has bigger negative impacts than positive consequences for the appropriating nations and we just have defective control of remote specialist inflow, right unrealistic for us to reduce its negative impacts and enhance the economy's welfare?

Past studies on the investment effect of immigration have collected that in spite of the fact that foreign workers are not dependably utilized; in any case, once they enter a nation, every last one of them can uninhibitedly enter labor markets of the immigrated nation (Senses, 2010). Then again, in practice, numerous obstructions for example the oppressive conduct of unions or the unfair structure of labor markets against foreign workers makes it demanding for them to cooperate in labor markets of the moved nation.

Subsequently, foreign workers just have a constrained access to labor markets. A few studies on the monetary effect of immigration don't make sufficient note of this (Arbeit ...