Migration

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    Migration

    • The supply of labour for an economy is influenced by the net immigration
      • If more people come into the country than leave, the labour force will increase in size
      • This increase can:
        • Overcome skill shortages
        • Reduce the dependency ratio
        • Increase government tax revenue
        • Help the economy to expand without encountering inflation
      • However, emigration can cause problems, as the labour force will suffer a contraction in supply (e.g. in Ghana, 3/4s of trained doctors emigrate)
    • Immigration can disadvantage low paid workers, as some of the immigrants will be prepared to work for lower wages
      • Immigration can therefore put downwards pressure on wages
    • Immigration may also put pressure on public services such as the NHS, especially if they’re concentrated in a specific area.
    • It is said that a lot of immigrants that work in low-skilled jobs are over-skilled for these, and may move onto more demanding occupations in the future
      • They could, however, be working in the UK whilst they wait for economic prospects in their original country to improve.

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