Economic Aspects Related to Migration

Migration has an impactful role in any region’s or country’s economic growth not forgetting that it also influences the distribution of economic costs and benefits. And this can directly be linked to employment. Talking of long terms, when some population migrates from one place to another, the population will include both high skilled and low skilled workers because every person has different amounts of ability and efficiency. These workers by migrating bring benefits to their host country by increasing income per person and also improving living standards there. If the migrant is defined enough he might contribute to the success of his company and his host country in general. His talent and expertise will help the company to gain profits and this way he also sets an example which would create more working opportunities for the people back in his native country and open doors for them. The trust factor is established at this stage by the employee. The low skilled migrant might not be efficient enough to increase gains for the company but at least he will fill the vacant position for which the natives couldn’t suffice for.

Thus paving paths for the natives to take up better jobs. And whatever the gains and profits are, at the end it is all shared amongst the population. However rich countries like US, France, Germany, UK have always been against migration especially when it comes to accepting immigrants. Clemens and Pritchett in their analysis of the economic case for migration restrictions mention that certain restrictions need to be posted on migration because the immigrants from poor countries will cause low productivity to rich countries and thus hinder their country’s development and affect its GDP in a negative way. No matter how illogical this all seems but it does exist in countries like US and UK (including others) where Indians are often deprived of basic rights and a life of dignity just because they are migrants unless they are someone equivalent to our current Google CEO. But if we see stats and records of a country like Norway, Furlanetto and Robstad argue that immigration decreases problems of unemployment but do affect the productivity in long terms.

 Whether one will migration not completely depends on the migration cost and benefit model which is one another important economic aspect of this process. The cost of migration includes the money available to someone to move from one place to another, to travel and find an abode in the place of destination which also defines the distance covered. Hence the cost of migration is directly proportional to the distance traveled by the migrant. Whereas the migration benefits include the opportunity available for one in the alien country where one might move.

Literature Student at Delhi University!