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Based on the material covered in class, the following is NOT true about the economic effects of immigration: a. Cheap immigrant labor often creates jobs

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Based on the material covered in class, the following is NOT true about the economic effects of immigration: a. Cheap immigrant labor often creates jobs in the host country through, for example, reduced labor cost and the resulting increased competitiveness of domestic companies in the global arena b. Cheap immigrant labor often increases wages of the locals through, for example, complementation of skills and the resulting higher productivity c. Cheap immigrant labor can increase unemployment, in particular when the skills of immigrants and locals are substitutable, and the demand for goods and services created by incoming immigrants is smaller compared to the increased supply of labor d. Although hiring undocumented workers is widely condemned as an unethical, unfair, and most importantly, illegal practice, many economists point out that the economic benefits of cheap illegal immigrant labor often outweigh the economic loses, as long as the number of illegal immigrants is kept under control. e. Although there is some controversy regarding unskilled immigrants, the influx of skilled immigrants who tend to occupy highly-paid positions is always welcome by locals in all countries

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