Transcript Immigrationx

Immigration
Aims:
 To understand the net impact on
economies of immigration.
 To identify who gains and who loses from
immigration.
 To assess impact of immigration on
‘source’ countries.
The incentive to migrate is
strongest when the expected increase
in earnings > the cost of relocation
Differences between countries in wages and
salaries on offer for equivalent jobs
 Access to the welfare benefits system of host
countries plus state education, housing & health
care
 Employment opportunities vary between nations,
in particular for younger workers
 A desire to travel, learn a new language, pick up
new skills and qualifications (human capital)
 A desire to escape political repression, fear and
corruption

Immigration
Video clips:
http://www.tutor2u.net/blog/index.php/econ
omics/comments/unit-1-micro-labourmigration-and-the-economy
http://www.bbc.co.uk/news/business
-16497765
Watch the clip then mindmap the possible
advantages to inward migration.
Migration provides numerous
advantages
Fresh skills
 A driver of innovation and
entrepreneurship
 Multiplier effects
 Reducing skilled-labour shortages
and expanding the labour supply
 Income flows (remittances):
 Tax revenues

Using AD/AS analysis show the
impact of inward migration on the
economy.
http://www.bbc.co.uk/news/uk-englandcambridgeshire-14423983
http://www.bbc.co.uk/news/uk-17148440
Watch the clips and then mindmap the
potential disadvantages to the UK of
increased migration.
Counter arguments
Welfare costs
 Worker displacement
 Wage cuts
 Social pressures
 Pressure on property prices
 Benefit claims
 Brain Drains

Who really gains?
http://www.guardian.co.uk/uk/video/2012/feb/02/i
mmigrants-benefit-britain-minister-video
Watch the video and then evaluate the
overall impact of immigration using the “
it depends on ......... trigger word”
Evaluation..overall impact depends
on.......
The types of people who choose to migrate from
one country to another.
 The ease with which they assimilate into a new
country and whether they find regular jobs.
 Whether a rise in labour migration stimulates
capital spending by firms and by government.
 Whether workers who come into a country
decide to stay in the longer term or whether they
regard migration as essentially a temporary
exercise (e.g. to gain qualifications, learn some
English) before moving back to their country of
origin.

Impact of migration on source
countries......
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A reduction in the size of the available
labour supply
A possible reduction in the quality of the
labour supply if skilled migrants leave
A fall in aggregate demand for goods and
services
A worsening problem of labour shortages
which could drive up wages, costs and prices
A decline in the tax-paying population which
will hit government tax revenues
Half Term Homework
Evaluate the view that free movement of
labour within the European Union improves
the efficiency of British businesses (25 marks)