Consequences Of International Migration Flashcards
What dies the Neoclassical economic theory suggest?
Economic efficiency is maximised when goods (free trade), capital (deregulation of financial markets) and labour (open borders) can move freely across international borders
What political philosophy is the neoclassical economic theory at the heart of?
Neoliberalism
What does free movement around the globe allow for?
The global economy to remain in dynamic equilibrium
Goods, labour and capital can move to where they are most needed and will attract the highest return
What is the prediction for growth in global GDP if global border were open?
108.2% or 2 times as rich
What would the problem with global open borders be?
The movement of people would be epic as at least 1/2 population would move to rich countries
What is brain drain?
Educated people leave as they have the ability to move when they want to
Who are the winners of migration?
Migrants
Non-migrants in poor country
Business in rich regions
How are migrants winners in migration?
Would gain from higher earnings
How are non-migrants in the poor country winners of migration?
Gain as wages would rise due to reduced labour availability
How are businesses in the rich regions winners of migration?
Would see increased profits due to increased availability of cheap skilled labour (brain gain)
Who are the losers of migration?
Non-migrants in rich regions
Business in poor regions
How are non-migrants in rich countries losers of migration?
wages would fall due to increased availability of labour
How are businesses in poor regions losers of migration?
Decreased profits due to reduced availability of labour (brain drain effect)
What is the long term effect of open borders?
All should benefit from the large richer global economy but migration on this epic scale would present many non-economic challenges and threaten national identity and sovereignty
What is the best example of a open border?
EU trading bloc
What are the 2 parts of the dependency school diagram?
Backwash
Swash
What is the movement of people from peripheral regions to core regions mainly made up of?
Selective migration of young, enterprising & educated workers seeking jobs
What is the movement of money from peripheral regions to core regions?
Flow of capital (savings of periphery residents investing in growing industries of the core)
What is the movement of people from core regions to peripheral regions?
Selective migration of elderly seeking retirement location
What is the movement of money from core regions to peripheral regions?
Flow of capital (remittances from migrants in the core & TNCs on back offices& branch plants)
What did Latvians migrate to places like the UK?
As average wage is £4000 a year in Latvia and £24000 in the UK
What are some common misconceptions about migrants?
“immigrants steal our jobs”
“immigrants sponge off welfare system”
What is the unfounded idea behind immigrants stealing our jobs?
Migrants cause unemployment amongst indigenous populations
Migrants cause wage rates to fall because they are prepared to work for less money
What is actually the case for migrants in host countries and employment? (Job creation)
Migrants increase employment as they tend to become employers (hire people)
More buyers of products so more staff needed
Why don’t migrants cause unemployment and wages to fall?
migrants (especially in the US) have different sets of skills to local workers so end up doing very different jobs
What is the lump of labour fallacy?
Migrants don’t actually take up more jobs as in 2005 there were 29.3 million UK jobs, 27 million for UK born, 1.6 million for migrants and 0.6 million unfilled.
What does the misconception that migrants are welfare sponges actually mean?
migrants cost the government money in the form of extra demands on welfare benefits, education and health and services and policing
Why is the migrants being welfare sponges not accurate?
As they have to have worked in the UK for 12 full months to claim benefits
Most migrants are young and healthy and most who require services are old or children
What is the average age of a migrant?
23
How much less likely are migrants to receive benefits or live in social housing?
60%
How much greater is migrant contribution to public finance then the cost of services they use?
37%
How much more is the cost of services used by UK born residents then the tax they pay?
20%
