Labour Migration And Macroeconomic Performance In The UK

Question 1

About how many people are estimated to live in different countries to where they were born

Answer 1

Over 250 million

Question 2

Economic benefits of inward migration

Answer 2

• skills and productivity
• increased labour
• innovation / entrepreneurship
• remittances sent home by migrants
• tax revenues

Question 3

Arguments against large-scale inward labour migration

Answer 3

• welfare costs including public services
• displacement of domestic workers
• social tensions
• rising housing demand
• poverty risk

Question 4

What do the benefits and costs of migration depend on

Answer 4

• who migrated
• the ease in which they migrate
• whether a rise in labour migration stimulates capital spending by firms and by government
• whether it’s long or short term

Question 5

Negative impacts for the countries from which people migrate from

Answer 5

• loss of labour / shortages
• reduced labour quality (skilled move away)
• fall in AD
• decline in taxes