Lesson Progress
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Whatever its source, migration has important impacts on our societies, and these can be controversial. The economic impact of migration is no exception. Benefit or burden – what’s the reality? To answer this question, it can be helpful to look at migration’s impact in three areas – the labour market, the public purse and economic growth.
Labour markets:
- Migrants accounted for 47% of the increase in the workforce in the United States and 70% in Europe over the past ten years.
- Migrants fill important niches both in fast-growing and declining sectors of the economy.
- Like the native-born, young migrants are better educated than those nearing retirement.
- Migrants contribute significantly to labour-market flexibility, notably in Europe. The public purse:
- Migrants contribute more in taxes and social contributions than they receive in benefits.
- Labour migrants have the most positive impact on the public purse. ● Employment is the single biggest determinant of migrants’ net fiscal contribution. Economic growth:
- Migration boosts the working-age population.
- Migrants arrive with skills and contribute to human capital development of receiving countries.
- Migrants also contribute to technological progress.
