Introduction to Econometrics Paper Research

Abstract We are extending this article of Qingfang Wang and Tetiana Lysenko in a way to help you understand unemployment in different ways by using statistics in ways of using tables and graphs. We compare years of when unemployment was low then increased. We will convey how Covid-19 made an impact in small businesses in San Jose Ca also demonstrate how businesses need immigrants or there is basically no economy. Introduction The influential work of Qingfang Wang and Tetiana Lysenko, we look at variables from the table and the coding strategy. Those work in certain jobs that have to do with their occupation. Immigrants have been reported as separated in the job sector. Research has shown that immigrant unemployment has been missed. With Covid-19 hitting we know that immigrants' unemployment for sure increased by a lot. Some studies have shown unemployment as a pitfall market outcome. Through the impact of this epidemic, we can also see the potential social problems of vulnerable groups that we do not pay attention to in peacetime. As we all know immigrants are known to be uneducated compared to American citizins. Studies show that immigrants are expected to commonly be in low-skilled and low-wage division and restricted vigor. As known unemployment disparately affects the welfare of immigrant workers and their families. Knowing that this was common even before Covid-19 our hypothesis could already be that when Covid-19 occurred it is currently still occurring. We could come to the conclusion that if these immigrants own or owned a small business in San Jose Ca. Literature review As mentioned previuosly the influential work of Qingfang Wang and Tetiana Lysenko, we look at variables from the table and the coding strategy in order to determine what individuals are the ones that get impacted in certain situations such as Covid -19 the worse (Wang, Q., & Lysenko, T.). As known the ones that got impacted the worst are the ones that were impacted in other ways even before Covid-19. The theory that is behind the hypotheses tested in past econometric studies. Introduced in “Silicon Valley Business Journal”, the small business community was hit hard by Covid. Silicon Valley’s CEO did mention, “That the housing cost situation in Silicon Valley, the cost of doing business here is high”, even before Covid (Wolverton). Not only does he mention how Covid impacted small businesses but adds on, “competitive advantages we do have here, the biggest being the innovation that we live in the tech area. There are 2 million people in the Santa Clara County consumer base. He expresses how businesses want to be in Silicon Valley and own a business here because it is so big. Even after Covid hit Silicon Valley it is a place to own a business and individuals want to sell their product. Covid-19 has wreaked San Jose’s (Bay Area) wealth, as introduced in Times Herald. The title of the article says that some small businesses in the Bay area are hanging on just like an auto repair shop in San Jose is down 80% of the amount of cars they would get (Castaneda). About 92% of small businesses were affected bt Covid -19, now that is a big percentage we could only imagine how unemployment is. Hinged by a study liberated by the Small Business Majority ⅓ has let-go of their workers in which most are immigrant workers (Castaneda). With Covid-19 causing this unemployment rates skyrocketed as well. Unemployment rate is high, in the article, “New study finds millions of workers are functionally unemployed”, states, “ study that takes into account people who can’t find jobs that pay above poverty level says the number of “functionally unemployed” is three times higher at 4.8 million”. Now let’s think about this, three times higher at 4.8 million that is a really high number. Studies show that among low-income individuals about 25.7% of them are unemployed,meaning they are wanting,but incompent to find, full-time employment paying above the poverty level. Those individuals wanting a job or wanting a full time job are making below $20,000, we live in the Silicon Valley where there is competition and it is a tech area. No one will make it if they are making below $20,000. These are the types of individuals that Covis19 impacted. In studies we can see that immigrants are the less fortunate ones. In the article, “Short of Workers, U.S Builders and Farmers Crave More Immigrants', immigrants from Mexico roughly make less than another individual would. The less fortunate immigrants are those that are less skilled. Undocumated immigrants in America decreased to 10.7 million, with no immigrants in the workforce could damage the economy. There is no economy without immigration, businesses still want immigrants but without business there’s no work for them. TPS is a temporary protection for immigrants. Only in special circumstances, when the country is in an emergency, can immigrants apply. Unlike refugees, they cannot obtain legal status in the United States after applying for TPS. This policy is described in detail in the article "The Impact of Temporary Protected Status on Immigrants' Labor Market Outcomes.", and the applicants and education level are compared. While this policy has provided job opportunities for some people, it has also helped economic growth and social needs. In the article "Marriage, children, and self-employment earnings: an analysis of selfemployed women in the US", the role of women in the family and social economy is discussed. If a woman is a small business owner, she has to face greater pressure, including factors such as the number of families and children. According to model calculations, when the number of children increases, women's working hours and income will decrease accordingly. Data and Method 2019 Unemployment rate: 3.5% 2020 San Jose residents. Unemployment rat: 12.6% 2021 San Jose residents are part of 2.2 million people in California who have or will completely lose unemployment benefits this week.Unemployment rat:1.8% Y=a+bX Y=income X= Covid-19 effects a= sales before covid-19 In 2019-220, the unemployment rate increased sharply due to covid-19, and this impact will inevitably lead to a direct decline in the income of small business owners. This equation can show the impact of covid-19 on income. In this equation, y represents the small business owner in San Jose, and a is the income before COVID-19, which is a fixed value. And x represents the impact caused by covid-19, and b reflects this variable. “The coronavirus crisis has slammed small businesses. Several of the biggest tech companies, including Oracle Corp. and HPE Inc., have moved their headquarters out of the area, prompted by the extraordinarily high cost of living here.”（Wolverton）As a gathering place for high-tech companies, the cost of living in the Bay Area ranks first in the United States throughout the year. Because there are a large number of companies, this high-cost life has also brought tremendous pressure to people while promoting business development. But it is undeniable that SJ's small businesses are still more dynamic than other places. According to the statistics, average income in San Jose of small business owners in 2019 was $771,000. However in 2020 it was reduced to 689,000, which was 20%. Compared with other regions, the average income in the United States has fallen by 54% in 2020. 689k=771k+b*(-54%) b=151850 By analyzing this formula, we can probably get the influence of Covid19 on the SJ area. After obtaining the specific value of b, b=151850, we can make a judgment: SJ will be less affected in 2020 than other parts of the United States. But when the overall income of small businesses in the United States decreases, it will also decrease along with it. Nevertheless, the impact of the virus on most individuals and families is still huge.“The damage is widespread: 92 percent of small businesses in California say they’ve been negatively affected by coronavirus, according to a new study released this week by the Small Business Majority, an advocacy group based in the Bay Area. One-third have permanently laid-off workers, and about half have done furloughs.”（Castaneda, Leonardo）Affected by this situation, in addition to income, the impact on life is even greater. Results and Discussions Let us first compare the unemployment rate. It is very obvious through data comparison that the number of unemployed people has increased greatly due to the epidemic. Obviously, the Internet and engineers only occupy a small proportion of these people, because these big companies all support them to work remotely. The most influential industries are service industries and small businesses, such as restaurants, waiters, and small shops. These industries are also jobs that immigrants mostly do, so it can be concluded that covid-19 has a huge impact on the income of small business owners. Although some low-income people can get subsidies, small business owners in San Jose still have to pay high rents for stores and home loans. Many people are middle-aged and have three to four children, and their small business may be the only source of income in life. There is no denying that their situation is very bad. If there are women among these small business owners and they have families and children, the pressure on them will be even greater. “LISEP researchers also found that women had a functional unemployment rate nearly 9% higher than men”（Bedayn, Jesse）In this special period, women are in a more difficult situation than men. For many women, if they are small business owners themselves, they also have children. Then their pressure will be even greater. While taking care of the children, they must also face the pressure of careers. Of course, in some cases, illegal immigrants can also work legally in the United States, but this is a very special case. "The United States occasionally offers temporary protected status (TPS) to migrants whose countries are experiencing civil unrest, violence, a natural disaster, or an epidemic." (Orrenius, Pia M., and Madeline Zavodny). Obviously during the period of cvoid19, even if illegal immigrants obtained work qualifications, they could not find job opportunities. Conclusions Covid19 has had a huge impact on small business owners in San Jose. The continuous increase in the unemployment rate has caused a reduction in people's consumption power, which in turn affects the economy and reduces the income of small businesses. Living in San Jose Ca. (Silicon Valley) is already a challenge since it is a tech area and it was already competitive even before Covid-19. Individuals such as immigrants suffered loss of jobs, homes, etc. in which they are the highest rate to be unemployed.