A Comprehensive Study on the Economic Implications of Global Migration

This essay delves into the multifaceted economic impacts of global migration. It begins by defining migration and its various drivers, then proceeds to explore the economic benefits, including increased labor forces, filling of labor gaps, and the payment of taxes by immigrants. The essay examines how migration boosts trade, increases wages, and enhances economic efficiency through skilled labor. It also discusses temporary worker programs and their effects. Furthermore, the paper highlights migration's impact on productivity, GDP growth, and economic sustainability. It emphasizes the role of migrants in sustaining economic growth by transferring skills, knowledge, and innovation, while also addressing the importance of controlled migration. The essay concludes by examining how migration boosts employment rates, increases individual income, and provides affordable labor, while also facilitating technology transfer. Overall, the essay underscores the significant contributions of migration to the global economy.

POLITICS OF
THE GLOBAL
ECONOMY

INTRODUCTION
• Primarily ,Migration is the movement of persons from one place to the other.
• Reasons for migration could be
• Economic,
• Political
• Social,
• Environmental.
• There are economic benefits stemming from the migration of persons.
• However, there are various disadvantages of migration such as over-
population, unemployment, rise in crime rates e.t.c.
• Overall, migration of human capital, technology has greatly benefitted the
international economy.

ECONOMI C G AI NS O F MI GRATI ON
• Through migration of workers, there is an increase in the laborforce.
• Specifically, the immigration population increase the American labor
force by forty –seven percent and seventy percent in Europe between
2004 and 2014(O.E.C.D,2014)
• The migrants are able to fill the labor force in countries with fast
growing aged population.
• Working population ratios are boosted by the ever-growing number of
immigrants thus filling the unemployment challenges in most European
Countries.
• In addition to filling job opportunities, immigrants also pay
taxes(Campbell,2018).

LABOR MARKET GAINS
• For countries lacking trading power in foreign markets, immigrations
increases the trade gains(Chang,1988).
• With the free movement of persons from one country to the other,
there is the exchange of skilled and unskilled laborers .
• Migrant labor services are likely to increase the wages and salaries
for native workers
• Due to the fact that foreign laborers come with valued workplace
experience might boost the economic efficiency and revenue for the
foreign country .
• Migrant workers who are skilled are a huge benefit for the foreign
economy

TEMPORARY SKILL
PROGRAMS
• Under immigration, temporary migrant workers programs can be used to boost the skill
shortage of a foreign country.
• The effects of this worker programs can be both positive and negative.
• Positively, worker programs are able to fill the skill gap in the foreign country for a given
period of time.
• Particularly, in the United States of America, Migrant workers are absorbed into the agriculture
and service industries .
• However, these programs might cause a decline in domestic salaries and wages(Levin
Institute,2017).
• The fact that immigrant workers are able to temporarily fill worker skill gap s,generates
revenue for the foreign country thereby contribution to the gross domestic product of the given
foreign country.

LABOR FORCE PARTICIPATION
• Migrant labor is responsible for the increased labor participation levels.
• Particularly, the Australian labor force participation levels rose by 2%
between the year 200-02 due to the influx of migrants from other
countries(Cully, n.d).
• The migrants are able to fill employment gaps in foreign countries.
• The migrants are likely to fill employment opportunities with low wages .
• Natives tend to occupy the high wage paying employment opportunities
thereby leaving a huge unemployment gap in low paying jobs.
• This employment gap boosts the employment chances for migrants in foreign
countries.
• The employment of migrants in foreign nations enables them to partake in the
labor work force in that country.

PRODUCTIVITY
• Migration has brought an increase in the working population.
• Between the year 1990-2015,advanced economies have recorded significant increases in the
working age group .
• The migrant population has contributed to this increase in working age capacity(Jaumotte,
Loloskova & Saxena,2017).
• Migrants are held responsible for the increased economic growth rates in most advanced
countries(Roy & Debnath,2011)
• In addition, migrants have boosted productivity levels in foreign advanced
economies(Colson,2016).
• The fact that resources are likely to be fully utilized due to the migrant labor, could make the
production of goods more efficient.
• Migrant labor helps the supply side of the economy to meet the demand in the foreign country
thus it’s importance.

GROSS DOMESTIC PRODUCT GROWTH
• An increase in immigration creates a double Gross domestic product per
capita in the long term(Colson,2016).
• The GDP (per capita) increase is attributed to the increased labor
participation of the migrant population.
• The recent, Brexit move to curb immigration is estimated to cause an
decrease in the country’s GDP (Colson,2016).
• Increased labor participation equals increased production of goods and
services thus leading to increased Gross domestic product for a country.
• In the event of reduced labor workforce, there will be a decrease in
domestic and international production volume which leads to loss of
massive revenue thus reduced economic activity.

SUSTAINING ECONOMIC
GROWTH• Migrant labor is responsible for sustaining economic growth(United
Nations,2011).
• Through immigration, there is the much needed transfer of skilled and
unskilled labor, human resource, knowledge, innovation which are very
vital for the growth of international trade.
• Through migration of laborers, there is an interaction of different ideas
and ways of production, technology which is key in promoting high
quality production of goods .
• Also , through transfer of knowledge, research and development can be
put in place to keep the products competitive through newer innovative
designs and processes.

• Migrant labor can be a substitute for the foreign countries struggling
with fast-aging working population.
• Immigrants are able to replace the ageing population.
• Also, skilled and unskilled migrants are able to form social ties
through marriages and other unions giving birth to the future
working population.
• Migrants role of procreating is also important in the rejuvenation of
the labor force in most countries.
• It is important that there be controlled migration due to the risk of
overpopulation in the foreign country.
• There is need to encourage reasonable migration patterns as
opposed to an uncontrolled immigrant system.

BOOSTS EMPLOYMENT
RATES• Through the employment of migrants ,skilled and unskilled migrants, the
economic and individual economic welfare improves.
• In the United Kingdom, the migrant employment has greatly boosted the
country's gross domestic product and its employment rates.
• Migrant employment has helped reduce the unemployment rates in the
country by filling jobs which natives cannot fully supply.
• Through employment of immigrants, the economic welfare of the
migrants, its citizens improves through public provision of services
partly funded by the revenue from migrant activities.
• The economic welfare of a country is measured by the revenue, economic
livelihood, income, government debt, which migrant labor contributes to
the public expenditure which contributes to the country welfare.

• The fact that migrants are employed in foreign countries, makes the
unemployment rates of those countries lower.
• Though it might be argued that migrants reduce the employment
opportunities for the native population.
• It is important that there be a balance of employment between native
and migrant population .
• However due to the fact that most natives are chosen for highly
skilled jobs, skilled migrants might have to settle for unskilled jobs
or lower pays.