3.5C costs and benefits of migration

• Source country = the country of origin of the migrant
• Host country = the country where the migrants go to
• benefits for the host country:

  • Skill gaps filled
  • low wage migrants fill labour shortages
  • multiplier effect (consumption)
  • helps balance an aging population - more tax payers
• costs for the Host country:

  • racial tension (xenophobia)
  • depressed wages
  • extra strain on services (housing, education and infrastructure)
• benefits for the source country:

  • remittances - link to employment and multiplier effect
  • reduced unemployment
  • returning migrants bring new skills
  • reduces pressure on environemt
• costs for source country:

  • brain drain
  • demographic imbalances
  • depopulation leading to dereliction