Th2.1: Migration Flashcards
What does an increase in net inward migration tend to lead to?
increased jobs
Due to the circular flow of income, what does immigrants spending do?
creates jobs and total employment increases without an increase in unemployment
What does an increase in net inward migration ALSO lead to?
lower wages, particularly for lower-paid lower-skilled jobs
UK firms are able to recruit foreign workers, meaning…
the supply of labour has increased and so the price equilibrium of labour is reduced
Who is most affected by this and why?
low motivated/skilled workers, as they are competing in the job market with more hard-working, skilled workers
What are most of the people who come to the UK to work like?
of working age and often take lower skilled jobs - less likely to claim benefits