Globally, the rate of immigration to developed countries stands at an alarming rate. The immigration policy is clear in most of the first world countries. Ironically, the problem of illegal immigrant still has a tremendous effect to the economic development of the host country.
A country like the United States of America boasts of high number of immigrants who positively contribute to its economy. Intuitively, both illegal and educated/legal immigrants pose economic benefits to the host country.
Unfortunately, most countries have imposed strict immigration laws to restrict the entry of illegal immigrants. Economically, immigrants pose great advantages to the growth of the host country especially in terms of labor and investment or businesses ventures.
First, most immigrants provide labor to the market at a lower rate (low wages) when compared to the natives. Most industries resort to expanding and hiring of new workers especially when there are many job seekers. Consequently, there are more jobs, which increase the rate of production.
Furthermore, most immigrants induce competition within the market, which later enhance the rate of production in the industrial sector or labor market. This is because most workers become oriented towards providing both quality and quantity services in order to keep their jobs.
More over, due to competition the low-skilled natives tend to improve their education levels in order to compete adequately with the immigrants. Eventually, a highly educated society contributes to innovation and research, which are good elements of the economy.
For instance, a critical analysis of the United States labor market in the health sector shows that the state needs at least 126, 000 nurses yet the immigration policy bars acquisition of these personnel (Fennnelly and Huart 2010, 2). Currently, most of the people in developed countries are of old age.
Unfortunately, eventually they may exit the labor market thus, leaving behind a great gap in the various industries. Nevertheless, incase there are many immigrants then the labor market will not suffer from professional deficit as they will willingly take over the available job opportunities (Fennelly and Huart 2010, 1).
Therefore, immigrants who provide social services especially in the medical sector subsequently pose benefits to the economic growth of the country.
Secondly, some immigrants establish businesses in their host countries. Consequently, besides providing jobs to other immigrants or some members of the host country they also contribute to the economic growth of the country through payment of taxes.
Similarly, immigrants who seek jobs in their host countries contribute to the economy of the host nation through mandatory payment of tax. Economically, the rate of payment of tax to the host country is always lower than the services it provides to the immigrants.
In addition, some of the immigrants are risk takers and may venture in jobs or businesses, which the natives dislike. Others accept to work overtime yet the employer pays them low wages. Although the aforementioned benefit may seem controversial to humanity, eventually it is the host country, which benefits.
An immigration of skilled labor does not only contribute to the social development of the host country but also adds value to the economic sector of the nation (Rourke 2011, 40).
Some of the immigrants’ posses’ great talents like music and sports especially football and athletics, which leads to both economic and social growth of the host country. Therefore, immigration offers professional and talent diversity in a country eventually contributing positively to the economical growth.
Thirdly, through establishing businesses and provision of labor, the immigrants eventually keep the inflation rates in the host country at a lower rate. Economically, low inflation rate is beneficial to the strength of the currency.
Similarly, the immigrants boost social factors like rents and housing, which eventually strengthens the economy of the host country. Through the provision of cheap skilled labor, both the natives and the immigrants increase the urgency or need of essential services.
Similarly, the expenditure on food, energy and shelter/housing remains at a lower level. Consequently, this reduces inflation in the host country and subsequently, contributes to the growth of the economy.
Statistically, most developed countries experience population influx through immigration. For example, the state of Minnesota recorded an influx of more than 200,000 immigrants in 2008 alone (Friedberg and Hunt 1995, 24).
Subsequently, this population has a significant percentage of more than eight percent in the work force (Friedberg and Hunt 1995, 27). Consequently, according to Albert Saiz, an economist, the phenomenon of immigration into the United States greatly contributes its economic growth. In addition, economists from the United States assert that the economic gain from the immigrants stands at $331 million dollars (Solow 1956, 90).
Therefore, immigrants provide both skilled and unskilled labor to the host country. Increased labor and market output strengthens the economy of the host nation.
A pursuant of skilled immigrant leads to high production in the economy of the host country. Production rate positively correlates with labor and human capital. Therefore, besides immigrants putting pressure on the natives to pursue higher education high human capital speeds up the economic growth.
On the other hand, most immigrants stay temporarily in their host country. An issue like lack of proper assimilation to the host country may motivate an immigrant to go back to his or her own country. Cultural diversity and language barriers are some of the factors, which may prompt an individual to re-immigrate.
Therefore, after working in a host country for a few years they go back to their mother countries. Economically, this step benefits the host country. Although most of them pay for social services like retirement package, medical coverage and other forms of insurance.
They forgo their investment during the process of re-immigration. Eventually, it is the host country, which benefits through experiencing high returns leading to economic growth.
In conclusion, immigration is a global issue that is still debatable in most countries more so, the developed nations. Each country has an immigration policy. However, eventually there is always an influx of both legal and illegal immigrants.
Although most countries bars freely entrance of foreigners, critical analysis of the impact of immigration shows that the host country grows economically. Most immigrants provide cheap labor while others establish businesses, which significantly contribute to the government especially through tax payment.
Furthermore, through acceptance of low wages, the immigrants contribute to the economy through acquisition of social amenities or services. Talent wise, some immigrants participate in international activities like football and athletics, which eventually contribute positively to both the social and economy of the host country.
Therefore, besides few social disadvantages posed by immigrants, most of them participate in the economic growth especially through provision of cheap skilled labor.
Bibliography
Fennelly, Katherine and Huart Anne. “The economic impact of immigration in Minessota.” North West Area Foundation. Web.
Friedberg, Rachel and Hunt Jennifer. “The Impact of Immigrants on Host Country Wages, Employment and Growth.” the Journal of Economic Perspectives 9, no. 2 (1995): 23-44.
Rourke, John. Taking Sides: Clashing Views in World Politic. U.S: McGraw-Hill/Dushkin Publisher, 2011
Solow Robert. “A Contribution to the Theory of Economic Growth.” The Quarterly Journal of Economics 70, no.1 (1956): 65-94.