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MIGRATION :silhouettes: (*PUSH/PULL FACTORS (High unemployment/few job…
MIGRATION :silhouettes:
FREE MOVEMENT
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EU economic integration - Free movement of goods & services, means of production (capital & labour), and service providers and service recipients
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*PUSH/PULL FACTORS
Encourage an individual to leave their country of origin (PUSH) and choose a given destination country (PULL)
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Attractive physical environment conditions (PULL) - weather, abundant resources
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FISCAL IMPACTS
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REDUCES dependency ratio
Migrants are a source of working age people, and this helps to reduce the ratio of retired to working people.
Working age migrants pay income tax, VAT
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LABOUR MARKET IMAPCTS
Labour market will adjust to an increase in labour supply in LR - return to equilibrium employment and wages
Different skill levels between migrants & non-migrants MIGHT in SR cause Non-migrant displacement &/or wages to FALL
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UK research - immigration has small impact on average wages of existing workers - more significant effects along the wage distribution: low-wage workers lose, medium and high-paid workers gain
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Wider market impacts
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Economies of Scale
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Also, if migrants help to grow the economy, there will be more tax revenue to finance public infrastructure