However, whatever the reason for the migration, the migrants significantly impact all aspects of life in their destination countries (Bauder 34). They include political, social, economic, cultural and educational levels. Although the effects are distinct in their own individual rights, they are intertwined in their impacts on the receiving country (Torre 31). Economic Effects Economic theories suggest that wage differences are part of the causes of international labor movements, with laborers tending to move to areas with better wages (Molina 62). Similarly, there is a movement of students from developing countries to advanced economies for either long or short studies.
Most of the privately sponsored students are involved in the labor market as well to earn extra money. Eventually, the assimilation of immigrants into the labor market of their host country impacts its economy. Research has shown that receiving countries benefit economically from immigrants although the gains may be marginal in certain circumstances (Stalker 86). Owners of business have a flexible labor force at their disposal as immigrants flood the labor market. The unskilled market is the biggest beneficiary as the unskilled labor is generally seasonal and sensitive to the fluctuation cycles of business.
Having a large labor resource implies that owners of business are able to add or reduce employees as required in accordance with business conditions. This results in more profitability and efficiency for the owners and higher productivity towards the economy. The business owners are also advantaged because the larger labor pools will bring down wages needed to attract workers. Furthermore, fewer incentives are demanded from the businesses to make jobs more appealing in order to retain workers.
Immigrants have a tendency of working for lower wages, enabling the business owners to cut down on costs of labor. This also affects the native workers because the immigrants’ readiness to accept lower wages brings theirs down too. With lower labor costs, business owners are in a position to reduce prices of goods and products, extending the benefits to consumers. This has a twofold advantage because it benefits both native and migrant consumers in the same manner, giving them buying power of goods they may not have otherwise afforded (Alesina & Ferrara 93).
The business, in turn, gains from a steady flow of the business cycle. If the receiving countries facilitate the staying of gifted foreign students upon completion of their studies, their entry into the skilled labor market has more positive contributions to the country’s economy (Douglas et al 71).
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