Migration, As A Cornerstone of Our Times
Trifu A
Published on: 2023-03-07
Abstract
Migration, mainly labor migration, represents the movement of people/working people from their homes, especially less-developed countries or regions, to other countries or regions, more developed, for the purpose of employment, or for normal conditions of living and good standards, in the case of war or natural disasters. Using secondary data and analyzing the facts which are produced or have been produced in the last 5 years, we came to the conclusion that migration is a defining phenomenon and process of the current era, a real cornerstone, and the labor migration is beneficial to economies with a labor force deficit, ensuring the increase of new value and the increase of performance, true in the receiving countries.
Keywords
Migration; Labor Force; Value Added; StrategiesGeneral Approaches On The Issue
Migration is the movement of a person or a group of people, either by crossing an international border, or even within the same state. This movement includes:
- Displaced persons;
- Migrants for economic reasons;
- Migrants for other reasons, such as those for family reunification.
The term that interests us in this analysis is that of migrant: emigrant when it is seen as leaving a territory, a country and immigrant when it is seen as having entered another region or another state. It is about the decision taken by a person, or a group of people, according to his/her own will, determined by external factors that no longer ensure him/her the desired standard of living, or the security of themselves and their families, according to the the second level of the Maslow’s Hierarchy of Needs (McLeod, 2020).
That is, in short, this action involves the movement of population(s) from one place to another, to settle permanently or temporarily. 4 (four forms) of migration are considered:
- Invasion;
- Conquests;
- Colonization;
- Emigration/Immigration.
Sursa: Saul McLeod (2020) Maslow's Hierarchy of Needs, www.simplypsychology.org retrieved February 10th, 2023 [1].
The UN stipulates that a migrant is a person who has lived for at least one year in a foreign territory, regardless of the causes. Also, as a migrant, following the practical situations in many countries of the European Union, but also in the world, seasonal people who work in agriculture are also considered migrants.
Migration is a key feature of a more interconnected world. Despite significant concerns about its economic and social implications, the movement of people across world borders increases global productivity. Countries that prioritize integration will make the most of this potential - improving outcomes for their own economies and societies, as well for the immigrants themselves. (www.mckinsey.com).
The impacts of immigration on the labour market critically depend on the skills of migrants, the skills of existing workers, and the characteristics of the host economy. They are also likely to differ between the short and long run when the economy and labour demand can adjust to the increase in labour supply.
Immigration affects the labour supply, as it increases the pool of workers in certain sectors of the economy. At the same time, immigration is likely to increase the demand for labour, as migrants expand consumer demand for certain goods and services. That is, immigration may increase competition for existing jobs in certain occupational sectors but it can also create new jobs. And, in this situation, we face the Classic Economic Thought of Supply and Demand, but in the French approach, Say’s Law, that is the supply always creates its related demand. This theory lasted in economic theory and practice until the Keynesian revolution, in the fourth decade of 20th century. We have to add to this approach Adam Smith, "the father of Economics”, who never explicitly discussed migration, but in the spirit of Classic School of Economic Thought, it exists a mobility of labor as a factor of production and, in this manner of geographical understanding, the free mobility of labor is considered migration (Rauhut, 2010).
Methodology
In this paper we used the following research and data collection methods:
- Bibliographic documentation;
- Quantitative method by analyzing the statistics made available;
- The qualitative method of non-participatory observation.
The secondary documentation consisted in the study of books, articles, especially from the last 6-7 years, when the phenomenon of migration suffered a particular magnitude. The works studied are also the last-minute ones that tell us what is happening in the labor market and, thus, we can also understand what needs to be done in this situation. The statistics through the EUROSTAT network are very suggestive in relation to various aspects of the migration phenomenon, especially immigration. Scientific observation should not be done separately, but in close connection with all the components of the issue under discussion. From all the analysis carried out, we made a synthesis of the understanding and the formulation of ideas regarding how the phenomenon will evolve, in the short term, we say, because in the medium term, with the sanitary, economic and even political-military challenges, we cannot take chances. The empirical link between the decrease in unemployment and employment by immigrants is evident, and hence the beneficial, positive aspects for society and the economy.
Current Developments of This Process and Phenomenon
Do you remember the situation in Afghanistan a few years ago, more precisely 2021, with the hasty departure of American troops? The destruction caused by the Taliban that led to a massive exodus of the population to other countries, especially from Western Europe. Afghanistan was the last major source of emigration during this period, joining Syria and Venezuela. We already have a partial conclusion regarding this phenomenon, as it is named and recognized throughout the world: the migrant crisis, generally speaking, is intensifying, especially after Afghanistan 2021, to which the COVID-19 pandemic, the changes climate, geo-political insecurity, all leading to a state of insecurity, anguish, anger and the need to find, however, the most appropriate solutions. And, ensuring an exponential increase of migration, the moment February 24, 2022 has arrived, with Russia's aggression against Ukraine, with massive material and human losses, with strong migration waves towards Western Europe.
Ukrainian War and Impact on Migration
As a result of Russia’s war aggression against Ukraine, started one year ago, the total migrants from Ukraine to EU contries/EU market, at mid-November 2022, was around 4.7 million people (of course, in many cases, at first stage, that is temporary preotection and settlements). The survey consulted underlines that this conflict led, in a very short time, to an exponential increase of immigrants in many of the OECD countries in Europe. We are referring to the working-age people (segment that interests us in the present analysis), whose share is around 40 % of the total employment in Netherlands, Lithuania, Estonia and UK). Similar figures are observed in Poland and Czech Republic (www.oecd.org/ukraine-hub/, 2023) [2]. A key question for the labour market integration for refugees, which is particularly pertinent in the case of Ukrainians due to their high educational attainment levels on average, is how to strike a balance between an early labour market entry and the need to ensure sustainable employment commensurate with their skills. Low-skilled occupations tend to be more accessible because the issue of the transferability of skills is by definition less relevant, as is the mastery of host country’s language. This is a part of how Ukrainian refugees entered on different EU’ labor market. Another qualitative claim in this issue: as a large share of refugees from Ukraine have high formal credentials, early assessment and recognition of their skills and qualifications are key to allow them to work in their field of expertise. As there is exchange between origin and host authorities, most refugees can provide full or at least partial documentation of their credentials, facilitating the recognition process substantially.
Importance of Labor Migration and Measures to Betaken
We face these days with the decision of German Federal Government wants to expel illegal immigrants who don’t intend to work (our emphasis). It is an important clarification related to migration, to that of labor force migration in particular (Moraru, February 2023).
Very interesting situation presented in the same article emphasis that from the start of the aggression in Ukraine, approximately one million refugees entered in Germany. Also, the main country of origin of immigrants was Romania, in 2021, the same in 2020, that is an EU Member-state.
At the same time, this action is considered one of the measures to take in order to control this complex and sensitive phenomenon. This is the core of understanding the phenomenon, considering that: it is not necessary to accept illegal immigration
The economic impact of migration has been intensively studied but, being about human beings, population movements, the field is still determined by certain uninformed, subjective perceptions that can lead to antagonistic approaches to migration. These negative, subjective views risk jeopardizing efforts to adapt migration policies to the new economic, demographic, social and health challenges facing the world today.
Furthermore, another eloquent in this respect: David Card, from the University of California at Berkeley, was awarded the 2021 Nobel Prize in Economics "for his empirical contributions to labor economics". Together with the other two laureates, Joshua Angrist and Guido W. Imbens, they provided new findings about the labor market and highlighted the conclusions that can be drawn from these natural experiments/analyses.
For example, David Card's analyzes focused on the analysis of the minimum wage in Germany, and the findings show that a higher minimum wage does not lead to a decrease in the number of jobs, as previously thought. His works follow on from those previously presented related to the existence of immigration and the impact on the labor market in receiving countries. And a really pertinent question that came up was what the situation would have been like if we had had lower immigration (www.dw.com/ro, 2021)?
Taking into account the complexity of the actual phenomenon and process of migration, it was developed a new branch of Economics, significant named The Economics of Migration (Portes, 2019) [3].
The positive effects of international migration are described by most analysts and specialists by the fact that migrants normally increase the demand for goods and services, bring increased budget revenues by paying taxes and fees, value added and, by consequence, the increase of GDP (see also Rotaru, 2009) [4-8].
Conclusions
Regarding labor migration, the emphasis must be placed on the fact that in order to obtain possible net gains in the form of higher incomes, migrants have opportunity costs of migration. In this category of costs, in addition to the travel costs, the cost of learning a language, the costs for food, psychological cost is also part of it, which is very important. This last cost involves the psychological erosion of the migrant by the fact that he cuts off contact with his family and loved ones, a situation in which the individual's ability to concentrate on the work he should perform could be diminished. In addition to these, the psychological cost also implies the irreversible effects it has on the family left at home, especially on the children, who suffer real emotional traumas and their personality development is even affected.
Governments of the receiving countries must have plans to deal with this phenomenon, because unexpected situations may arise (see the case of Ukraine), with a strong emigration flow that requires firm, but also flexible measures regarding the situations created.
Economists and other scientists, based on statistical data, but also on the realities of recent years, are unanimous in their opinion that immigration is a beneficial process for the receiving countries. The liberalization of the migration policy leads to obtaining certain advantages for the respective economy, as well as for immigrants, in the sense of increasing the GDP, the income level and, by training, to motivating these immigrants, this population to do more and better for the economy- host.
However, everything must be analyzed punctually, balancing the demand for labor and the supply coming from migrants (taking into account the people who are part of the families of those applying for jobs), so that the social and economic balance does not be affected in proportions that can no longer be managed.
The latest important flows of migration require the receiving states to combine strategies with tactics in the field. Strategies involving the basic measures to take knowing the pattern of these flows, and tactics focused on migration flows when they occur: the magnitude of them, the structure of immigrants and how to deal promptly to not disturb the economic and social life.
References
- McLeod, Saul Maslow’s Hierarchy of Needs, www.simplypsychology.org retrieved February 10th, 2023. 2020.
- Moraru, Iulia Germania vrea sa scape de imigran?ii ilegali care nu vor sa munceasca (Germanz wants to ged rid of illegal immigrants who don’t want to work), www.evz.ro, retrieved February 26th, 2023.
- Portes, Jonathan the Economics of Migration, Sage Publications, www.journals.sagepub.com/doi/full retrieved February 27th, 2023. 2019.
- Rauhut, Daniel VIEWPOINT: Adam Smith on migration, www.researchgate.net/publication/, retrieved February 24th, 2023. 2010.
- Rotaru T. Demografie si sociologia popula?iei. Structuri si procese demografice (Demography and population sociology. Demographic structures and processses), www.polirom.ro, retrieved February 25th, 2023. 2009.
- What we know about the skills and early labor market outcomes of refugees from Ukraine, www.oecd.org/ukraine-hub/, retrieved February 25th, 2023.
- Global Migration’s Impact and Opportunity www.mckinsey.com, retrieved January 30th. 2023.
- Premiul Nobel pentru Economie pe anul 2021 (Nobel Prize for Economics 2021), www.dw.com/ro/, retrieved February 25th, 2023.