EC1111 - International Economic Policy RHUL Vinay P. Nundlall Seminar 3 1. The diagram below shows pre- and post-equilibria in the labour market due to migration in the Receiving (Home) Country. Draw the analogous diagram for the Sending (Foreign) Country and discuss the effects. e Ā£/hour SLocal SLocal + Imm e 10 e' 7 DL 0 100 110 Employment (millions) 2. For debate and discussion in the Seminar. Read the Course Reader, page 72-76, and the summary of the study by Dustmann, Frattini and Halls. a) What are the factors that attract migrants to the UK? b) How do migrants from the A8 countries contribute to the UK economy? Do the costs outweigh the benefits of accommodating migrants in the UK? Further Practice Question - This will not be covered in the seminar. However, it can help you understand the issue of migration better if you cover this. Read the article from the Economist "Migration and Development". The article is posted on Moodle at http://moodle.rhul.ac.uk. Answer the following questions: (a). Do you believe that migration is beneficial for the world economy? (b). What are the cost and benefits of migration for receiving countries? Think of examples from current or historical events. Does the increasing number of migrant labour elevate or deteriorate the level of productivity in
the receiving country? (Refer to sectors such as health, education, IT and sports, in receiving countries, to support your answer).