Economic impact of immigration

Economic impact of immigration

Introduction : What are the costs of the immigration? What are its financial results? What economic balance sheet can we draw up it? Such a balance sheet was until now difficult to establish. We ignored the exact number of the descendants of immigrants and we knew few things of their activities. A recent study brings some informations on these subjects and allows to divide the immigrants and their descendants by zone of origin. The establishment of an economic balance sheet thus becomes possible.

The country s wealth The actives immigrants (13% of workers) account 6% of GDP (PIB in France).Immigrants are behind 13% of "total turnover. So immigrants are a major component of our economy because they produce and consume. A Spanish study shows that from 1995 to 2005 in the Europe, without immigration, the GDP (PAR HABITANTS) has decreased by 0.23% a year instead of rising to 1.79% e year therefore immigration increases the wealth residents. Immigration in Europe has allowed a more rapid GDP growth (especially in Spain).

Immigration is beneficial to the economies of host countries and for employment because of increased consumption that results in stimulating the economy and tends to increase the number of jobs

Do the immigrants represent a cost for the public finances? Actually, the immigrants represent 16 % of the unemployed persons, while they constitute only 9 % of the working population, according to the INSEE. Their population pyramid is rather favorable to the public finances, calls back the economist of the OFCE: it is often about young persons and old enough to work. They are thus going to pay taxes while their education will not have been chargeable to the State ". After all, " the clear budgetary effect seems reduced enough ", concluded the first annual report of the European Commission on the migration and the integration. The immigration also plays on the labor market.

Money transfers to countries of origin These transfers have decreased by 10% in 2009 due to economic crisis. In some poor countries, the financial contributions that migrants send home exceeds development aid received and contribute enormously to the country's revenues. The planet 200million migrants send more than 300 billion dollars annually to the country of origin. Remittances comers migration are important for countries of origin.

On average 40 % of the immigrants living in France, and 17 % of their descendants bring a grant to their region of origin. It is particularly the case for the populations stemming from Sub-Saharan Africa. We explain it by the fact of specific social orders which attach strongly the individuals to their roots. The extended family remains the socioeconomic unity of base and the village of origin a place of reference and exchanges of the solidarities. Nevertheless the study of hourly pays shows that in few exceptions near (immigrated in the UE27 and their descendants), the immigrants and the descendants of immigrants perceive on average an hourly payment lower than those of the majority population

Contributions to the country's resources During the 30 glorious years (45-75) have allowed immigrants to rebuild France as much physically and economically at the point of view of the population (600 000 deaths in France during the 2nd World War). Immigration provides labor, skilled and unskilled, or the 2 are useful in legal economy because there is a shortage of qualified workers in sectors (doctors in the field...) and in non- -qualified (retirement of the baby boom therefore more or less qualified positions to be filled) which is useful for the present and future economy, especially as the workforce ages and the European low birth rate leads to a lack of manpower in the long term may be limited by the contribution of a young immigrant labor initially unskilled and becomes more and more skilled (the skilled workers have higher productivity than average), see overqualified (escape from our brains to richer countries offset by the arrival of others from poorer countries).

The weight of immigration on public finances is both positive and negative, in fact, immigrants are a burden to the state (16% unemployment to 9% of total assets of their eventual low skills and discrimination hiring.) Nevertheless, it is mainly young people, who were educated by their State of origin (so they do not cost THE STATE) but who pay taxes and thus contribute to the financing of State (11.9 billion euros per year). The State may implement a selective immigration policy in which the state will give papers to immigrants who only allow the deficit of manpower in some areas regarding the age and qualification. Social spending in favor of immigrants (old-age benefits, health, housing, family...) amounted to 51.9 billion euros, which may justify the selective immigration policy of the state because it would reduce expenses for qualified people represent less weight to the state (people are better qualified because they pay more attention to them: living conditions, health...).

The population growth of Europe stagnates and his working population quickly ages. Certain studies indicate that before 2050 an European citizen on three will be more than 65 years old and that 20 million qualified jobs(uses) will not be provided. In 2007, there was approximately 3 million vacancies in Europe, according to the figures of the Commission. While this shortage concerned traditionally little qualified jobs(uses), sheextends more and more in sectors requiring qualified workers, as engineering and information technologies.

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