Localized labor supply shocks diffuse across the wider economy without depressing average native wages.
Inter-regional trade, geographic mobility, and business-model adjustments prevent localized spikes in labor supply from dragging down average native-born salaries.
The same conclusion keeps arriving from across the workspace's research — 1 topics independently instantiate this theme. Filter the evidence by where it came from:
The massive and sudden localized labor influx of the Mariel Boatlift failed to depress wages or increase unemployment for native workers, demonstrating the market's high absorption capacity.
It explains the structural diffusion mechanism where trade and migration disperse localized immigrant shocks, shielding native wages from localized depression.
It confirms that even massive post-pandemic localized surges of unauthorized workers fail to depress average local wages.
It identifies corporate technology and output mix adjustments as key mechanisms that prevent localized labor shocks from depressing average native wages.