Net migration - the difference between the number of people coming to live in the UK and those emigrating - rose to 182,000 in the year to June, up from 167,000 in the previous 12 months.

Prime Minister David Cameron wants to get this figure below 100,000 before the next election in 2015.

Net migration into UK increases - Office for National Statistics http://www.bbc.co.uk/news/uk-25135418#story_continues_3 28 November 2013 Last updated at 13:17 GMT

Net migration - the difference between the number of people coming to live in the UK and those emigrating - rose to 182,000 in the year to June, up from 167,000 in the previous 12 months. Prime Minister David Cameron wants to get this figure below 100,000 before the next election in 2015.

IMMIGRATION AND HOST COUNTRIES

Presented by: Huda Ahmed Yussuf (GS 35418) Rafiqa Murdipi (GS 35924) Zahra Hosseinian Shirvan (GS 35552)

OUTLINE

Definition of migration- immigration and emigration Causes of immigration General effects of migration Effects of immigration Empirical evidence Conclusion References

International Migration

inflow • Immigration

outflow • Emigration

Movement of people from one country to

another for the purpose of better life.

Migrant stock in top receiving countries

0 5 10 15 20 25 30 35 40 45 50

US

Russia

Germany

Saudi Arabia

Emirates

UK

France

Canada

Australia

Spain

Migrant stock in 2013

Migrant stock in 2013

Causes of Migration

The income per

capita gap

between origin

and destination

Possibility of career

development

Instant wealth

More job

opportunities

Higher pay

Migration policies

Non economic

factors

Lack of employment or entrepreneurial opportunities

Fewer opportunities for career advancement

Market failures

General Effects of Migration Changes in labor market outcome Income convergence between people of poor

and rich countries Increase of efficiency due to transmission of skills Increase trade between sending and receiving

countries Increase investment in Human capital Poverty reduction

Effects of Immigration

Effect on GDP growth

Effect in labour market outcomes

Effect on fiscal burden Effect on trade

GDP Growth

Authors name Data Findings Ortega and Peri (2009) Agiomirgianakis and Zervyianni (2001)

OECD countries: 1980 – 2005 Simulation exercise

Immigration may increase or decrease GDP growth depending in the economic condition of the host country

Dolado et al 1994

23 OECD countries: 1960 - 1985 GDP per capita decrease as immigration is a an increase in population. However the decrease is half of the decrease due to natural population increase

Morley (2005)

Australia, Canada and USA: 1930 -2002

There is dual causation between immigration and economic growth

Author Data Findings Rojas et al (2010) Spain: 1995-2006 Immigration can increase in

labor supply as most western countries have high percentage of ageing population

Friedberg (1995 & 2000) and Grossman (1970)

Israeli: 1972 - 1983 US: 1970

The effect on native unemployment is very small as the possibility of substituting native for immigrants is low

Johnson (1980) ; Authukurala and Devadason (2012)

US: Simulation exercise Malaysia: 2000-2008

Increase in immigration decrease wages of low skilled natives, but the magnitude is small; however, increase returns of high skilled and capital owners.

Labor market outcomes

Increase in supply of labor

Native unemployment

Decrease in wages

Fiscal burden Author's name Data Results

Borjas (1994) Theoretical review Unskilled immigrants are more likely to use many government services and to pay lower tax.

Storesletten (2000) Using annually data for 1.6 million high skilled Immigrants 40–44 year-old in US

Selective immigration may save the government from spending on raising the labor force and accumulating human capital and at the same time increase revenue from working population. However in long run the benefits are offset.

Increase in bilateral trade

Author’s name Data Results Girma and Yu (2002)

UK: 1981-1991 Immigration from non-Commonwealth countries have a significant effect on export.

Head and Ries (1998)

Canada: 1980-1992 Immigration has a significant positive relationship with Canadian bilateral trade. The increase in import is more than the increase in export.

Migration can be seen as form of globalization (especially

for labor shortages in the region)

Adoption of return migration scheme may lower the fiscal

burden of the host countries and help the low developed

Immigration has shown sign of income convergence

hence developed nations should consider it in their

international development policies

Conclusion

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Reference