2.3.3 Flashcards
What are the economic benefits of net inward migration?
-Fresh skills and higher labour productivity
-Increase in size of active labour supply
-Innovation and entrepreneurship
-Positive multiplier effects (if they find paid work)
-Reducing skilled-labour shortages
-Remittances sent home by migrants add to GNI of home nations.
-Tax revenues
What are the risks/costs from net inward migration?
-Welfare costs increasing cost of public services.
-Displacement of domestic workers.
-Social tensions of intregating extra workers into areas.
-Rising demand for housing forces up property prices
-Poverty risk
What is the macroeconomic effect of labour migration on the labour market?
Increase in the active labour supply which might cause lower unit labour costs for a host country.
What is the macroeconomic effect of labour migration on consumption?
-Increase in population size
-rising demand for public services
-If housing stock is fixed, can lead to higher prices and rising rents.
What is the macroeconomic effect of labour migration on fiscal effects?
Inward migration increases pressure on government spending but can also lead to rising tax revenues.
What is the macroeconomic effect of labour migration on competitiveness?
-Human capital helps to generate ideas and products
-Many migrants start businesses = possible exporters
-Knowledge spillovers.
What are some recent technological advances that might improve long run aggregate supply?
-3D printing
-Quantum computing
-Cloud based AI
-Nuclear fission
What are some possible advantages of automation?
-Improved product quality
-Shorter working weeks for labour
-Rising productivity
-Safer working conditions
-Lower operating costs
What are some possible disadvantages of automation?
-Job loss for some workers, replaced by machinery
-Initial large capital expenditure by businesses, difficult for small firms to compete
-Reduced flexibility if using specialist machinery
-Risk of hacking
A high trained/skilled labour force should impact the economy in what way?
Increase an economy’s LRAS as each worker is capable of producing more output, higher human capital raises productive capacity
What is the ‘brain drain’?
Where high skill worders in developing countires emigrate to other countries to receive higher pay
Human capital?
The skills, experience, aptitudes and attitudes of human input into the production process.
Tertiray education?
Education beyond secondary education.
Transferable skills?
Skills that can be used in a number of different occupations.
Vocational education?
Career or technical education that provides practical education.
