Illegal Immigration and the Wage Gap
The normal equilibrating capacity of a market economy is short circuited when the influx of low-skill illegal immigrants is nationwide. If American workers could easily escape to another country offering higher wages, then wages in the USA would quickly recover from a surge of immigrant workers, and employers would gain only a short-lived benefit. So, it might not be worth paying off politicians to import cheap labor from poor countries.
“... the social status of Latinos, even those born in the United States, is persistently low… they are often the people who found themselves in such desperate economic circumstances at home that they preferred to live as illegal immigrants in the United States. (Latinos constitute nearly half of the foreign born in the United States, but four in five of illegal migrants.) The effects have been dire: there can be no doubt that immigration is widening social inequality in the United States.”
“To avoid having a substantially poorer and less educated Latino underclass for many future generations, [the US] should considering policies to increase the number of highly educated Latino immigrants.”