Movement Of Labour Flashcards
What are the advantages of the free movement of labour
Deal with labour shortages
Prevent wage/cost push inflation by increasing the supply of labour
Creates additional demand —> labour is derived demand
More flexible labour market
Migrants fill undesirable jobs
Help with demographic challenges —> migrators will be working age and contribute to public finances —> helps with ageing population
Reduces regional inequalities —> migrants in MEDCs send some of their income back home increasing living standards there
What are the problems with the free movement of labour
Large net flows of people —> cause infrastructure problems —> strains public services (but increased tax revenue can help fund these strained services) e.g.UK has experienced net migration during times of austerity which has put pressure on these services
Increases congestion —> social and economic costs —> negative externalities
Downward pressure on wages
Brain drain impact on LEDCs harming economic development
