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1. Immigration can have both positive and negative impacts on the labor market of receiving countries, with concerns about wage depression being a main reason for opposition to more liberal migration policies.

2. The impact of immigration on wages depends on the skill distribution of immigrants compared to that of native workers, with unskilled native workers being most vulnerable to wage decreases.

3. Other adjustment mechanisms besides wages, such as changes in output mix and production technology, can also play a role in how an economy responds to immigration. Empirical studies have shown mixed results regarding the labor market impact of immigration.

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