Leaving from one Place to Another

Emigration, departure from a country for life or residency in another country. On the other hand, immigration, a mechanism in which people become permanent residents of another country. The mechanism of immigration has traditionally been of great social, economic and cultural advantage to states. Immigration history is long and diverse and has in many ways, contributed to the growth of multicultural societies; many contemporary countries are distinguished by a large range of cultures and ethnicities that have arisen from previous waves of immigration.

Immigration will bring major economic benefits – a more competitive labor market, a stronger skills base, increased demand and a greater variety of technologies. Immigration is still contentious, however. It is argued that immigration will cause problems of overcrowding, congestion and extra pressure on public services. There is also a question as to whether immigration of unskilled labor contributes to a downward impact on salaries and even the unemployment of native workers.

Positive Effect

Increased economic performance and standards of living. Net immigration would lead to an increase in the size of the population and to an increase in the productive potential of the economy. Immigration contributes to higher growth in the economy, with a resulting boost in tax revenues and a potential for government spending.

Potential entrepreneurs. It is argued that immigrants often arrive with little money, so that they have a greater motivation to try to make something for themselves. Also, people willing to leave a country to try a new business are the most enthusiastic and willing to take chances, and the result appears to be a more diverse part of the workforce. Immigrants that are young and mobile are also likely to be entrepreneurs – to set up companies that manufacture creative goods.

Increase in demand and growth. The fear of immigration is that 'immigrants are taking jobs from the native population,' but this is recognized as a lump of work failure. The assumption that the number of workers is still fixed. This is not the case, however if immigrants migrate to the United States or the United Kingdom and obtain jobs, then they will invest their salaries in their new country, generating new demand for services and products. Far from 'work taking,' immigrants are contributing to GDP growth.

Better skilled labor force. In the United Kingdom, immigrants working in the economy are more likely to have more educational and qualified skills. For example, only 20% of UK people finished their education at or after 21. But up to 21 or later, 53% of new immigrants were educated. (LSE Study 2012) Immigration enables the economy to recruit highly qualified workers to fill work vacancies and to lead to higher tax revenues.

Net benefit to government revenue. Since immigrants are more likely to be young and work than native-born residents, they offer a net profit to government revenues. Working people pay income tax, but they do not earn compensation, such as schooling, pensions. Young people are less likely to use health care than older people.

Deal with an aging population. Many western economies are facing a demographic crisis with a low birth rate and an aging population that causes an increase in the dependence ratio (the ratio of old to young workers). This puts pressure on social security, tax revenues and government expenditure. Immigration is the most successful policy for dealing with an aging population, since it enables vacancies in health care and social care to be filled by young people who make a net contribution to government budgets and improve the workforce.

A more flexible labor market. Immigrants are very mobile. They migrate to economies where wages are high and labour-intensive. This helps avoid a thriving economy from overheating by supplying labor to satisfy rising demand. Less clear, though is the fact that once the economy experiences a downturn, migration flows sometimes reverse, meaning that they don't stay and try and get unemployment insurance but return home.

Multicultural culture. Away from economics, some feel that immigration contributes to greater cultural diversity, giving a nation a more dynamic and inclusive feel. All countries with immigration have incorporated some aspect of international culture in their own countries – whether it be food, music, literature or political influences.

Negative Effect

Possible negative effects on actual incomes. It is argued that low-skilled immigrants are placing downward pressure on incomes. The point is that a rise in the availability of unskilled labor allows businesses to fill vacancies with lower wages than before. Between 2010 and 2018, the United Kingdom had a high net migration rate, but this was also a time of stagnant real wage development. The effect on incomes appears to be greater for low-paid people and those with little educational qualifications.

Real GDP per capita is likely to decline. Immigration proponents also point to how real GDP is growing, and that is true. An rise in population would increase the national production of ceteris paribus. But GDP per capita is a more useful metric. If immigration is low-skilled and/or not on the labor market, it would lead to a decline in real GDP per capital.

The systemic unemployment rate. Immigration may lead to some displacement of native-born workers, who would then experience systemic unemployment. For example, if migrants obtain unskilled labor because they are willing to work for lower wages. Those native-born low-skilled workers can find it more difficult to obtain new jobs in higher-skilled occupations.

Systemic unemployment. Immigration may lead to some replacement of native employees, who would then experience structural unemployment. For example, if migrants get unskilled workers because they are willing to work for lower wages. Indigenous low-skilled workers can find it much more difficult to obtain new jobs in higher-skilled occupations.

Housing costs. If migrants migrate to areas with small housing stock, migration will place upward pressure on rents and house prices, reduce living standards and increase housing insecurity for both migrants and natives with high living costs.

Disharmony from rapid immigration. While some are more like a multi-cultural community that arises from globalization, others are less welcome to this transition and feel that their culture and background are challenged by immigrants that do not fit into their current society. This is especially the case for immigrants who do not learn the native language, who have various religions and belief systems, and who live in largely isolated communities.