Immigration

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  • Created by: Finbarrr
  • Created on: 22-11-16 12:35
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  • The impact of immigration
    • Migration impacts on the labour market
      • The impacts of immigration on the labour market depends on the skills of migrants, the skills of existing workers, and the characteristics of the host economy
      • In addition to expanding labour supply, immigration can also increase the demand for labour as migrants expand consumer demand. This, in the long term, provides more investment.
      • Immigration can also increase competition for jobs, as well as creating new jobs.
        • Studies have also found that immigration has no overall effect on employment within the UK
          • However, between education ranges there is statistical evidence that immigration does have an impact, most noticeably on those with less than A level qualifications, impacting employability, labour market participation and unemployment
        • There has been statistical evidence that suggests non-EU immigrants were responsible for the reduction of employment of UK born workers between 1995-2010, and that the negative impacts of immigration are most likely to be witnessed during economic downturns
      • Immigration studies have found that immigration as a whole has little effect on average wages, instead increasing the range of wages experienced in the UK. Essientially the poor get poorer and the rich richer.
        • Studies focused on 1997-2005 show that an increase of migrants equivalent to 1% of UK working age caused a 0.1-0.3% increase in wage average
          • Another study, this time focusing on 2000-2007 showed that the same increase of migrant numbers decreased the wage by 0.3%
        • Indeed this theory is backed up by a study into the effect of immigration between wage ranges. It found that a 1% increase in the share of migrants working lead to a 0.6% decline in the lowest 5% of paid workers but an increase in the highest paid workers
    • Government Policies
      • Post 2010
        • Conservative party target to reduce net migration from hundreds of thousands to tens of thousands reflected in much stricter policies for non-EU members
        • Eligibility of visa criteria have become more selective-no effect on overall numbers
        • Student work rights have been reduced and more scrutiny introduced over colleges sponsoring international students. Over 800 colleges either had their license to sponsor non-EU students revoked or failed to reapply for sponsor status under the new rules. Visas issued to international students fell by more than 50,000 from 2010 to 2014
        • Net migration was almost 200,000 above the 100,000 target when the last official statistics were released before the election, and are now even higher. Failure to meet the target was driven by both EU and non-EU migration. If EU net migration had remained at 2010 levels, the level would still have been more than double the target
      • Post Brexit
        • The most controversial topic regarding the Brexit vote was the right to free movement, both of EU citizens and immigrations.
          • There is much debate on whether or not free movement will or will not be allowed within Britain, perhaps in trade for access to the free market. However it is hard to predict.
          • If Britain decided to decline the right to free movement it may adopt a bilateral agreement with certain countries, allowing the movement of citizens and immigrants
            • The country may also adopt a points based system, as present in Australia and Canada, where migrants wishing to enter the country must accumulate a set amount of points to enter a country. An issue with this, however, is it does not admit migrants specifically for a job, meaning once they have entered a country there is no guarantee of them securing a job.
              • This scheme actually often ends up admitting more citizens though so it is questionable as to whether or not it would be deployed in the UK. Australia and New Zealand had 28% of their population born abroad by 2013
                • This term may be being used loosely, as a method of referring to  a strict set of criteria based on economic need for the country
                  • It is questionable as it relies on the judgement of the government, and is almost entirely based upon opinion

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