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Migration is movement of people from one
place in the world to another for the purpose of
taking up permanent or semi permanentresidence, usually across a political boundary.
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Why do people move?
A study in Eastern Europe showed
that economic factors like income
differences drive short-term migration,while demographics are likely to
influence long-term movement.
Migration pressures, created by the
development gaps between poor and
rich countries and fuelled by the
process of globalization, will result in
further migration.
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4 key questions which regularly
arise in debates about the economicconsequences of migration
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Has migration led to unemployment ?
Common belief-there is a fixed amount of work that can be done
in the economy and that if one group gets more of that work than
existing workers will get less
Fact-immigration has very small or no effect on employment of
workers already resident
Net immigration has been rising since 1997 but the
unemployment rate fell between Jan 1998 and August 2005, from
6.4% to 4.7% in UK
A possible explanation could be the following-
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i m m i g r a n t s b en o w e n j o y b e t t e
d u e t o r e l a t i v e l y
n a t i v e s n o w i n b
u n e m p l y m e n t f
h a v e a c c e s t o
n a t i v e s b e t t
f i r m s i n c r e a s es i n c e h i r i n g l a b
i m m i g r a n t s a
w i t h l o w w a
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Does migration cost the tax payer?
Common belief-not everyone benefits from high scale of
migration-it means extra pressure o public services
Fact-study using 1999-2000 data found that migrants in UK
Paid-31.2 billion in taxes
Received- 28.8 billion in public services and goods
Making a net contribution of about 2.5 billion
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Does migration damage developing countries?
Two issues dominate the topic-Brain drain and Remittances
1. BRAIN DRAIN
many migrants have high level of education and those who come
from developing countries may have benefited from their societies
decision to invest in education at the expense of other public goods.
Brain drain also may also harm developing countries that hope to
attract foreign investment
It is possible that home countries may benefit from the return of
migrants brain gain). but the most talented migrants are most likely
not to return
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Country Rate ofCountry Rate ofimmigrationimmigration
Guyana 80.62%Guyana 80.62%
Jamaica Jamaica
Gambia 58.51%Gambia 58.51%
El Salvador 46.63%El Salvador 46.63%
Trinidad Trinidad
Rate of immigration to USA of people aged 25+ with 13yr
or more of education
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2. REMITTANCES
Remittance are not only growing quickly but are now worth twice
as much as Overseas Development Assistance and almost as muchas Foreign Direct Investment
An important study by World Bank economists found that
remittances can be a very powerful anti-poverty tool, predicting
that, on an average, a 10% increase in remittances would produce a
decline in the share of people living in poverty of between 1.8%
and 3.5%.
However there is some debate about the impact of remittances on
the level of inequality in the home countries.
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Remittances constitute a major part of the GDP of many
countries
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Top recipients of migrant remittances-2008
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Does migration hurt migrants?
Migrants are the clearest gainers from migration in terms of incomebut
individuals might face significant risks ofexploitation and socialexclusion.
The World Bank modeled potential economic gains by 2025 fromincreased migration-
The baseline was a world in which the proportion of migrants in each
region stays the same over time
And in the alternative scenario migration increases enough to produce a
3% growth in the size of the workforce in high income countries
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Real incomes in 2025, difference between the baseline scenario
and the alternative
Difference inDifference in
total realtotal real
income($income($
billion)billion)
Difference inDifference in
total realtotal real
income(%)income(%)
Natives in high incomeNatives in high incomecountriescountries
+139+139 +0.36+0.36
Natives in developingNatives in developing
countriescountries+143+143 +0.86+0.86
New migrantsNew migrants +162+162 199199
Across the world as a whole alternative scenario raises total
income by $356 billion-a 0.63% increase
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..THE OTHER SIDE OF THE COIN
A large scale project showed-Migrant employees earned less than the average for all employees
Migrants working in hospitality sector worked unpaid overtime,
those working in construction were paid overtime but not necessarily
at a higher rate
Only a minority received benefits like paid holidays, sick leaves
and free accommodation
Workers who were illegally resident often experiencedvulnerability, fear and anxiety
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Conclusion-
Host countries gain from migration. though it is possible to debate thesize of these gains
The impact of migration on home countries is probably positive but
would be more if a higher proportion of workers sent money to their
families
The impact on migrants themselves is generally positive but individuals
can face several costs
There is little evidence that migration has had a negative effect on the
distribution of jobs and wages, though, there is a risk in specific sectors
Migrants should be the clearest winners but must be guaranteed the
rights to social services and benefits.
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Thank
YouAnkit Agarwal(7918)
Mehak Sharma(7932)
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