Impact of labour migration on international business environment

Abstract

It has been established that international migration contributes to optimizing the distribution of human capital, reducing interregional differences, and improves the functioning of labour markets, the international business environment of host countries and countries of origin. A generalization of the results of previous empirical studies suggests that the positive effect of migration is higher than the negative effects of impact on national markets, while this impact is different for highly and low skilled workers, for firms and employees, and for producers and consumers. In the host countries, migration allows filling job positions in what the indigenous population does not agree to work, contributes to the expansion of production and lowering of the tax burden on the working population. In countries of origin, migration reduces unemployment and makes the national labour market more flexible. Thus, international labour migration opens up new opportunities for the socio-economic development of host EU member states, provoking a large number of problems both at the level of society and the state. The current stage of integration processes in the EU is accompanied by the rapid development of external migration processes, so the unified EU migration policy must be implemented taking into account the problems associated with the mass flows of immigrants to European countries, the consequences of the financial and economic crisis, the current trends in European labour markets, and the real needs of these labour markets. It should be noted that the existence of a direct link between migration and the unemployment rate and difference in income makes it possible to empirically confirm one of the main tenets of the neoclassical macro-level theory that migration arises as a result of the difference in income between regions (countries) and the existence of labour surplus in the region where the migrants come from. Consequently, workers migrate from low-wage and labour surplus regions to high-wage and labour shortage regions. Thus, a migrant's goal is to maximize its income and minimize its costs.