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Shocker: Nanny Shortage May Force Rich Parents To Care For Their Own Children

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Will tighter restrictions on seasonal workers create a shortage of nannies and resort workers? The US has tightened up on the number of visa's it hands out, and now the folks over at the Economist are worried that this could create a shortage of foreign workers. This strikes some folks as a potential calamity, although we're not so sure. If the government's restrictions are creating a shortage, you'd expect this to boost the price of seasonal labor, luring more American teenagers and college kids back into the market.
But will a shortage result from the lack of seasonal work visas? We're not so sure. With the economy plummeting toward a recession--if not already knee-deep in one--we'd expect the demand for resort workers and nannies to decline. What's more, the supply of foreign workers eager to fill jobs in the US might also be declining due to the decline of the dollar relative to most foreign currencies.
In short, there might not be any shortage of foreign nannies. And even if there is, it's possible the dollar rather than immigration policy might be to blame. This should be easy to test but we notice a reluctance on the part of economists to actually test things about immigration rather than just applaud it.
Where have all the nannies gone? [Economist]