3.5 - Issues: Labour Migration

Question 1

What are the potential micro effects of a fall in net labour migration?

Answer 1

Skilled labour shortages
Impacts property price + demand
Lost dynamic efficiency

Question 2

How does falling net labour migration reduce dynamic efficiency?

Answer 2

Brain drain leads to skill shortage
Productivity falls
Workforce not equipped

Question 3

How does net outward migration affect labour supply + demand?

Answer 3

Demand grows
Supply shrinks