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The Costs and Benefits of Economic

Migration
IMPACT ON ORIGIN / SOURCE COUNTRY
ECONOMIC COSTS

• Loss of young adult labour force


• Loss of skills base and entrepreneurs - could slow economic development
• out - migration may cause spital of decline which is difficult to halt (see link on
NE Deindustrialisation blog)
• Loss of labour may discourage inward investment, increasing dependence on
government support.

ECONOMIC BENEFITS

• Prospect of reduced under emloyment in the source country


• Returning migrants bring new skills to the country which may revitalise home
country economy
• Money sent home by migrants may be invested in the home economy or
businesses
• Les pressure on resources including basic supplies such as food and water and
essentail services such as healthcare

SOCIAL COSTS

• Perceived benefits of migration continue to encourage following generations to


migrate with a net detrimental effect on social structure
• Disproportionate number of females left behind
• Non return of migrants leaves imbalance in population structure with long term
consequences
• Returning retired migrants may impose social cost on the community if there is
an inadequate support mechanism to cater for them

SOCIAL BENEFITS
• Population density reduced and birth rate decreases (young fertile who migrate)
• Money sent home by migrants can finance improved education and healthcare
facilities
• Returning retired migrants increase social expectations within the community,
e.g., demand for better leisure facilities

IMPACT ON DESTINATION COUNTRY


ECONOMIC COSTS

• Cost of educating migrants' children


• Increasing over dependence on migrant labour to support some industries (e.g.
vegetable picking in East Anglia)
• Leakage of money earned by migrants, including pension payments, goes back
to country of origin
• Increased numbers of people puts pressure on existing resources such as
health services and education.

ECONOMIC BENEFITS

• Migrants take up less desirable jobs


• Host country gains skilled labour at reduced cost
• 'Skills gap' in host country may be filled by qualified migrant workers
• Retirement costs are transferred back to the source country

SOCIAL COSTS

• Discrimination against minorities leads to civil unrest and political extremism


• The dominance of males is reinforced, especially in countries where the status
of women is low, e.g., Persian Gulf states
• Aspects of cultural identity are lost, particularly among second and third
generation migrants
• Segregated areas of similar ethnic groups are created, and schools become
dominated by migrant children

SOCAIL BENEFITS
• Creation of a multicultural society increases awareness, respect and
understanding of other cultures
• Influx of new and revitalised community services and businesses, e.g. corner
shops and Turkish baths
• Growth of ethnic retailing and areas associated with ethnic food and textile
outlets, e.g. fabric shops in Manningham, Bradford

Check this link on the impact of Economic Migration


http://news.bbc.co.uk/1/hi/business/2019385.stm

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