migration is movement of people from one

8/14/2019 Migration is Movement of People From One

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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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migration is movement of people from one

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