Economic aspects of immigration

Abstract

The analysis of literature provides a review of the influence of immigration on economy. The immigration has economic motives that influence the labour market in a country of business, employment, remuneration, GDP and social system.

The research aim is to analyse the influence of immigration on employment, remuneration, social system and GDP. The research applies general scientific research methods, including monographic and logical construction methods.

Having analysed issue-related researches of several authors, the author concluded that immigration can have whether positive or negative impact on remuneration of local labour force, employment, social system and GDP. The influence of immigration on labour market depends on skills and qualification of immigrants as compared to the local market.

The negative impact of immigration is noticed in the low-skilled labour segment, while the positive impact – in the high-skilled segment.

The economic influence of migration can change over time, whereas the immigrants acquire new skills and get experience in the local market. There are a number of differences in costs and revenues among different groups of immigrants that depend on age, education and length of residency.

The influence of immigration on employment and salaries in countries of business depends on the local labour market conditions, as well as on the number of immigrants, their skills and qualification level. Immigration can decrease salaries of the local labour force with similar qualification level, at the same time decreasing revenues of one employee on average. Immigration has more negative impact on remuneration in low-skilled industries, while remuneration of high-skilled labour force can even increase, since the amount of resources produced by the low-skilled labour increases.