Migration: Benefits

1
Migration Benefits Costs

• Econ 303 International Economics
• Professor Carlos A. Benito

Chagall
2
Immigration Effects

• Labor Market Effects
• Public Budget Effects
• Economic Growth Effects
• External Effects
• Cultural Effects

3
Labor Market Effects

• Movements of Labor Force
• Welfare impact via Labor Markets
• Effects in Sending Country
• On Remaining Workers
• On Migrants
• On Employers
• Effects on Receiving Country
• On Workers
• On Employers
• Effects on the World

4
Labor market impacts
North
South
Sn
Snm
Migrating Costs
Sr
Ms
Srm
Dn
Mr
Out migration
In migration
5
Welfare impacts
North
South
Sn
Snm
Sr
Ms
a
b
Srm
f
d
e
Dn
Mr
6
Government Budget Effects

• Effects on Taxes
• Effects on government goods and services
• Public Good Cases
• Merit Goods Cases
• Education services
• Health Care services

7
Public Good
P
S
Dab
Da
P
Db
P
Da
Quantity of Public Good
8
Sources of Growth
Growth rate
Technological Change
Organizational Change
Labor growth
Capital growth
9
External Effects of Migration

• Externalities
• Effects produced on third parties when consumers
  and producers (the two parties) engage in market
  transactions
• Positive Externalities
• Knew Knowledge
• Diversity synergy
• Negative Externalities
• Extra noise
• Conflict
• Crime

10
Externalities Review
External Benefits
p
p
External Costs
Ssocial
Sprivate
Sprivate
Dsocial
Dprivate
Dprivate
q
q
Too little production
Too much production
11
Cultural Effects

• Mono-culturalism
• Multi-culturalism
• Relationship between economic and cultural
  effects

12
Policies to Select Immigrants

• Economic based policies
• Skilled or unskilled workers
• Low or neutral impact on government budget
• Immigrants age
• Social based policies
• Family reunion
• Political based policies
• Refugees
• Philosophical based policies
• Dominant culture or multi-culturalism
• Mechanisms
• Quotas, incentives, costs