By keeping labor supply down, immigration policy tends to…
“By keeping labor supply down, immigration policy tends to keep wages high. Let us underline this basic principle: Limitation of the supply of any grade of labor relative to all other productive factors can be expected to raise its wage rate; and increase in supply will, other things being equal, tend to depress wage rates.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Limiting the number of workers in a sector raises wages; increasing workers lowers wages if other factors stay the same.
In simple terms: Fewer workers → higher pay; more workers → lower pay.
Key Takeaway
Consider labor supply when evaluating wage trends.
Themes
economics
labor markets
policy
wage dynamics
Mood
analytical
critical
neutral
Type
economic
policy
analytical
When to use this quote
- policy debates
- business hiring
- career planning
- government regulation
Key Concepts
Supply and demand
marginal productivity
factor pricing
Questions to Reflect On
- How does technology affect labor demand?
- What other factors influence wages?
A Different Perspective
Assumes other factors remain constant, which rarely holds true.