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 establishes that geographic mobility and trade act as safety valves that spread local labor supply spikes across a much wider geographic footprint.
It shows how open economies adjust their industry output mix to absorb labor supply shocks, mitigating downward pressure on localized native wages.