Almost a year ago, on April 23rd 2010, the governor of Arizona signed into law a tough illegal immigration bill that attempts to reduce the number of undocumented/illegal immigrants in Arizona. The law is not yet implemented because the Courts are looking into the constitutional aspects of the law, but from a purely economic (not moral or political) point of view, what will be the likely effect of the proposed new law (assuming that the courts allow the law to go into effect and assuming that the proposed law does not have any effect on criminal activities in Arizona)?
a. In the short run, it will reduce the wages of unskilled US citizen workers and unskilled legal immigrant workers in Arizona.
b. In the short run, more employers will move to Arizona from neighboring states.
c. Assuming that that illegal/undocumented workers were employed in Arizona, in the short run, Arizona's gross domestic product will fall.
d. As illegal immigrants leave, employers acquire more wealth and pay less taxes - creating a virtuous cycle.

