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Impact of Migration on Income Levels in Advanced Economies

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Impact of Migration on Income Levels in Advanced Economies

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IMF,

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Immigration has medium- and long-term impacts on developed economies.

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Editorial Rating

8

Qualities

  • Scientific
  • Eye Opening
  • Background

Recommendation

Immigration was unquestionably one of the driving forces that propelled UK voters to embrace Brexit and US voters to elect Donald Trump as president. The visceral reaction to immigration obscures its powerful economic effects on advanced economies, where the push-pull dynamic between assimilating new migrants into the culture while augmenting the workforce is a fundamental tension. Economists Florence Jaumotte, Ksenia Koloskova and Sweta C. Saxena dissect the immigration question and detail its positive ramifications. getAbstract recommends this important study on the complexities of immigration to policy officials and business leaders.

Summary

The debate over immigration continues to dominate the political and economic landscapes in advanced economies. Policy officials must navigate the complex costs and benefits of immigrant assimilation. Ultimately, decision makers must balance the political and social ramifications of immigration with the economic considerations.

Immigration adds vibrancy to the economy by lifting per capita GDP via increased labor productivity and rising numbers of workers in the labor pool. Immigrants to the developed economies include high- and low-skilled workers, and...

About the Authors

Florence Jaumotte and Sweta C. Saxena are senior economists at the International Monetary Fund, where Ksenia Koloskova is an economist.

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