Economic Effects Of Immigration

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My paper deals with the concept of immigration and more importantly its implications on economics and the effect of economics on immigration.
Immigration is a concept that isn’t new to us although today both the adverse effects of immigration and its positive implications are looked at by governments all over the world, who accordingly adjust their policies as per their needs.
With the spread of the Ebola virus and ships carrying illegal immigrants capsizing off the coast of several European nations namely Italy the need to reduce illegal immigration and more importantly to create an appropriate legal framework so as to accommodate immigrants both legal and illegal is a matter of much concern even in India, where we time and again
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It is also seen that there are several immigrants in Mumbai, Delhi and other metropolitan cities who come from relatively rural areas. I hope to look into this and hopefully fine the cause or the reason behind a person choosing to immigrate using economic concepts or factors that may drive the person.
The topic I have selected is concerned with Immigration in its several forms ranging from immigration between nations to that within a country. I hope to study both the cause and effect of immigration on the concerned country i.e. the reason for people moving to other countries or states and the effect of this movement felt on the host nation.
I hope this largely sociological and political concept using an economic perspective, and I hope to find the economic effects of immigration along with the economic reasons behind a person’s choice leave his/her native country or city.
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The formation of colonies laid the groundwork for immigration between nations, slave trade too played a key role in the movement of people from one place to another.
Today with the help of globalization we still see immigration but on a relatively smaller scale than during the colonial era, an important fact to be noted is that ever since the start immigration has been mainly to improve one’s economic situation in one way or another although it may not always be in the interest if the immigrant as seen in the in the case of slaves. Therefore we can see that immigration has almost always takes place in the hope to bring about economic prosperity.

The effect of immigrants on the host country
Immigrants directly affect the host nation; this may have positive or negative implications. The labor market performance of immigrants is used to measure the contribution made the immigrants. Barry Chiswick (1978) and Geoffrey Carliner (1980) analyzed how immigrant’s skills adapted to the host country’s labor market by estimating the cross-section regression model: log wi=Xiφ+δAi+γoIi+γ1yi+εi,
(source: page 5 of the economics of immigration by George J. Borjas Journal of Economic Literature Vol. XXXII (December 1994), pp. 1667–1717
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