Economics paper

In situations whereby they feel threatened by the above factors, the migrants can form social groupings of those with similar traits like ethnicity, color, skills and use that as their bargaining power to venture into the labor market. In this case, the enclaves ensure that they maintain the status quo and in most occasions it acts to their disadvantage as they are unable to advance in that they may not seek new educational qualification, or they don’t make an effort to learn the language of the natives.

It is however worth noting that the way the migrants are paid for the wages is mostly not measured by their productivity or genuine qualifications on most occasions but their wages are mostly based on discriminatory factors like culture, race or some other criteria which is not linked to how skilled or unskilled that laborer is (Dustmann 335-6). There is a tendency for people, especially minorities to work in jobs which are way below their qualifications and even less pay since they do not have a strong bargaining power. Te effect of this on the wages of the natives is that there is a tendency to have the wage rate brought down since there is a ready availability of cheap labor.

In the current capitalistic business nature, most employers find it better to hire migrant workers at the expense of the natives since the former is more committed to work than the latter. The attitude to work is far better and their willingness to work for long hours for less money means increased profitability for the business people (Orrenius 760-3). This has at time brought conflict with the labor legislations when they are underpaid and for them, they do not mostly complain since by comparing such wages with those in home countries for similar jobs, they (migrants) feel that they are just fine. The natives in such situations feel deprived and this at times leads to xenophobic attacks like witnessed in South Africa earlier in the year (2008).