The primary obstacle to new housing construction in the United States is exclusionary zoning, leading to severe housing shortages in many areas. A new study suggests that immigration restrictions also contribute to the problem by reducing the supply of workers. Economists Troup Howard, Mengqi Wang, and Dayin Zhang conducted a study on the impact of immigration enforcement on the construction labor force and housing supply. They found that deporting undocumented construction workers leads to reductions in construction workforce, homebuilding, and increases in home prices. The study also revealed that undocumented labor complements domestic labor in the construction industry, and reducing the number of undocumented workers can negatively affect native workers as well.
The findings of the study align with previous research showing that mass deportation can decrease job opportunities for native workers. While immigration can increase demand for housing, deportation reduces supply, leading to a net increase in housing prices when more immigrants are deported. The authors argue that immigrants and native workers benefit each other economically, with immigrants playing a significant role in the construction industry.
The comparison is made to the impact of expanding job market opportunities for women and minorities in the twentieth century, which ultimately benefited society as a whole. Similarly, restricting immigrant workers or reinstating racial segregation would result in a less productive and innovative economy. The key takeaway is that the economy is not a zero-sum game, and immigrants and native workers can prosper together if given the opportunity.
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