The Impact of Migration on Donor and Host Countries

The Impact of Migration on Donor and
Host Countries
Advantages of migration for the host
Migrants fill jobsIf a country is facing a labour shortage, the economy may
depend on migrant workers to keep certain industries going. Also
as the population of a country ages there might not be enough
people to fill the jobs that are available. eg In 2006 50% of food
production jobs were filled by foreign nationals.
 Migrants pay taxesThey contribute to the economy by paying taxes like income tax
and VAT. They can also create new businesses and products in
the host country. eg. Polish shops and newspapers.
 Migrants create cultural diversityAs migrants settle into society, a greater understanding and
tolerance towards other cultures and habits is developed.
Disadvantages of migration for the
host country
Pressure on the welfare systemWhen migrants first arrive they need jobs and housing. This
usually created higher unemployment rates and puts
pressure on the health, education ad transport systems.
 Low paid workLots of migrants do not have the language skills they need to
improve their job prospects and end up doing unskilled work.
This can lead to discrimination and exploitation.
 RacismIntegration of migrants into a community may cause racism
and discrimination.
Advantages of migration for the donor
Remittance flowsThe money migrants send home is very important for
developing countries. It is the secondl argest source of
outside funding for developing countries after foreign
investment by private companies.
 SkillsMany migrants learn new skills when they work abroad.
When they return home they bring these new skills with
them and help the local economy. eg people might bring
back skills in nursing and education.
Disadvantages of migration for the
donor country
Brain DrainIt is often the highly skilled workers that leave an area.
This prevents the development of the donor countries
economy. Many African countries are experiencing brain
drain today.
 Decrease in revenue for the governmentWhen these highly skilled workers leave they are no
longer paying income tax and VAT to the donor country’s
government and government spending may decrease.
 By
Cara McDonald