What are the 3 measures of the scale of migration
Long term immigration, net migration and visa grants
Which of the 3 measures of the scale of migration are imperfect
Visa grants it’s just an estimate
What is the population change equation
(Births - deaths) + (immigration - emigrants)
What happens to wages and employment as immigrants enter the labor market
Total employment increases and wages decrease
However how is it possible for native workers to actually earn more after immigration
They can increase their productivity by specialization in tasks better suited to their skills
What are some push factors for why people migrate
Famine, poverty, low wages, unemployment, war, violence
What are some pull factors for why people migrate
Hugh wages, employment, property rights, economic freedom, peace, law and order, educational opportunities
What are some stay factors for why people don’t move
Family ties, friendships, cultural familiarity, employment
What are some stay away factors for why people don’t move
Language barriers, cultural barriers, discrimination, unemployment, low wages, war and crime
When is migration more likely in terms of wages
When the welcoming country has much higher wages
Who is more likely to migration older or younger people
Younger people
Explain the Roy model
In each country an individual has skill level (s) and wage for this skill is w(s). But they can work in other countries so skills are transferable across countries and mobility costs are ignored
Define negative selection for the Roy model
The wage skill profile is flatter in the destination country than the origin country (low skill workers move from less equal countries to more equal)
Define positive selection for the Roy model
The wage skill profile is steeper in the destination country than the origin country (high skill workers move from more equal countries to less equal)
Examples of economic assimilation (how well integrated migrants are)
Are they earning the same wages and do they catch up to the other workers?
Equation for the immigration surplus (remember the diagram to help)
Surplus = 0.5 (w0 - w1) (N - M)
Equation for the immigrants as a share of the workforce using immigration surplus diagram (remember the diagram to help)
(N - M) / M
Equation for labour share of national income for the immigration surplus diagram
W1 x M / National income
What is the argument for migration costing the taxpayer
Some argue that migrations especially lower income ones have higher rates of welfare use so yes they do cost the taxpayer
What is the argument against migration costing the taxpayer
Because migrants are young and employed in high demand migration can make a positive fiscal contribution
What is the argument for migration in helping the aging population
Migration can help offset the economic pressures created by an aging population as older people are more likely to be receiving state pensions and care instead of paying tax
