Friday, January 18, 2008

American Apparel and Immigration

American Apparel is a company best known for its barely clothed models, but it's making news for a stance it's taking on a political issue. An article in The New York Times discusses an ad campaign the company is running on the subject of immigration reform, featuring (fully clothed) American Apparel workers from Latin America.

Strictly from an economic perspective, apparel companies have a strong incentive to favor immigration reform. Allowing more workers into the country legally increases the supply of workers, which could keep wage costs low. The article seems to imply that for American Apparel, the cause of immigration reform goes beyond their economic interest. Do you think that's true? How could you test that hypothesis?

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