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Question

Assertion (A) : Some of the studies have shown that low skilled immigrants actually raised the wages of their less-educated native born counterparts in the surrounding area.
Reason (R) : The native born less educated persons shifted from manual labour to office jobs, which paid them higher wages.
Codes :

The correct answer is
(A) is true, but (R) is false.

Assertion (A) Analysis: Immigrants and Native Wages

The assertion states that some studies indicate low-skilled immigrants can increase wages for less-educated native-born workers in the surrounding area. This is considered true based on findings in certain economic research.

These studies often point to mechanisms like:

  • Complementarity: Immigrants and native workers may perform different tasks, with immigrants taking jobs that natives are less willing to do, complementing native labor.
  • Increased Demand: Immigrants contribute to local demand for goods and services, potentially boosting employment and wages for native workers in related sectors.
  • Specialization: Native workers might specialize in tasks where they have a comparative advantage, leading to higher productivity and wages.

Reason (R) Analysis: Native Worker Mobility

The reason suggests that less-educated native-born individuals shifted from manual labor to higher-paying office jobs, which supposedly explains the wage increase mentioned in the assertion. This reason is considered false as the primary or sole explanation.

While some native workers might experience upward mobility over time, this specific reason does not accurately capture the complexity or the most common explanations found in studies linking low-skilled immigration to native wage increases. The observed wage effects often occur within similar skill levels or through indirect channels, rather than a direct, large-scale shift of the native less-educated workforce into higher-paying office jobs solely due to immigrant presence.

Conclusion

Assertion (A) is supported by some research findings on the economic impact of immigration. However, Reason (R) provides a specific, and potentially inaccurate or incomplete, explanation for the phenomenon described in (A). Therefore, the assertion is true, but the reason is false.

This aligns with Option C: (A) is true, but (R) is false.

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Important Questions from Economic Geography

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  2. "Hyper markets" are shopping centres located

  3. What is another name for shifting agriculture?

  4. Kolar Gold Field is located in-

  5. A major part of gypsum and silver ore in India is extracted in _______.

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