The Effects Of Immigration On The Host Economy - 1502 Words

The aim of this literature review is to provide an overview of the various effects of immigration on the host economy. The consequences I will be focusing on are on employment, inflation, wage level, economic growth and the welfare system. I am also going to examine what effect the skill level of immigrants has on the economic development of the host country. Then we will concentrate on papers about the situation in particular countries. There is plenty of research available about that particular topic and I would like to start with one of the earliest papers I found. In 1975 Professor Julian L. Simon (Simon 1975) assessed the aggregate effects of immigration on the incomes of natives in the United States and he found out that immigrants constitute and â€Å"excellent investment†, worth, in 1975, somewhere between fifteen and twenty thousand U.S. dollars to natives. While conceding some negative effects on the citizen work force in the form of job replacement, Professor Simon argues that immigrants not only take jobs, they also create jobs indirectly with their spending. He believes that international immigration is on the whole a positive effect. While he admits that there is some increased competition with citizen unskilled workers, the injury to citizens is very low and immigration has a virtually unmitigated positive benefit in economic terms. Also Professor George Borjas (Borjas 1990) made compelling arguments for increasing immigration to the United States but at theShow MoreRelatedImmigration On The United States1302 Words   |  6 PagesImmigration Rights in the U.S. Immigration has occurred in the U.S. for for many years. Some say it’s the foundation of our country. America is the country where people leave their own country to live. People would leave due to mistreatment, hunger issues or job opportunities. 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