(solution) In the last two decades, the United States has been subject to huge increases in the illegal…

(solution) In the last two decades, the United States has been subject to huge increases in the illegal…

In the last two decades, the United States has been subject to huge increases in the illegal immigration of workers from Mexico, most of them unskilled, and the government has considered ways to reduce the flow. One policy is to impose larger financial penalties on employers who are discovered to have hired illegal immigrants. What effect would this policy have on the employment of unskilled illegal immigrants? What effect would it have on the demand for skilled “native” labor?