Semantron 2015

region (…) and recent immigrants [probably less integrated] made a positive net contribution to the UK fiscal system’. Similar results were found by prof. I. Gordon (LSE, 06.2014). Also the division of cost of public goods on higher number of population while marginal cost close to zero allows ‘substantial implicit saving’ by government. This is possible largely due to the structure of immigration in UK, weighted towards professionals (Stalker, 2001). According to OECD report: ‘While openness to immigration is therefore generally needed, highly skilled personnel, such as good scientist and entrepreneurs, are even more in demand’ (p.106 Legrain, 2006). It is no surprise that many countries in fact try to attract this high-skilled migration. They pull the best individuals in particular areas, equipped with ‘comparative advantages’ (some nationalities are better in particular skills than other due to the geographical, cultural factors, and development - compare with Legrain, 2006, p.96 and next) with their experience, links, boosting innovation, and potential grateful and loyal to the receiving country for giving them opportunity. Governors might consider putting them together to facilitate these innovation diffusion and spill over effects within clusters, like Milan for fashion or London for financial services. All cited research agree, that while overall impact of the immigration might be neutral or positive, impact of high-skilled migration is always outperforming. And, what may be equally significant, receiving country pays relatively nothing for education of newcomers (language courses or credit for higher education comparing to public education through about 12 or more years). However, a potential increase in the real national output due to high-skilled may significantly outweigh the real impact. Utility of immigrants, however perverse it sounds, is often downgraded and therefore their skills are not used optimally. This is not unexpected, after all, immigrants often need time to establish themselves in new environment. There are many examples of post graduates who start their careers from the very bottom of the labour market, undertaking physical work, only in order to improve their communication skills. This is compounded by the fact that foreign qualifications are often not recognized. Natural upgrading is connected with life cycle of immigrants, however due to a welfare loss there is need of harmonization of skills and certificates to such extent, that employers would be able to compare them. Frankly there are more concerns about the impact of lower-skilled workers. While we appreciate the Oscar given for immigrant creating in our country or get enthusiastic when promising young player born abroad declares willingness to play for our national team, the ‘bloody’ foreigner with his funny accent in our company who agrees to do overtime for free does not make us optimistically-viewing towards result of our wage rise ask. The fiscal effect of immigrants, popularly speaking, draining our welfare was said before, but what is the effect on wages and unemployment? Is the low-skilled migration a substitute for native workers and crowds out natives? By increasing competition in the labour market and lowering the average cost of production due to decreases in average wage, some native workers may consider as more preferable and useful to stay at home at claim unemployment benefits than work for lower wage. On the demand-side, low-skill workers have also their preferences, not only being a factor of production but also as consumers they create more demand for other goods. Thus, both AD and AS are shifted leading to an increase in the real national output. Moreover, low-skilled workers often meet demand for the so-called 3-D jobs (dirty, dangerous and difficult), where there would be simply shortage of hands to work due to different aspirations, and willingness to work of native workers resulting from difference in standard of living. Thus, the lowest-skilled immigrants fill the gap in services that cannot be readily mechanised or imported. Because they can be easily hired and fired, immigration as a shock absorber helps with the sticky wages issue – brought in to meet sudden demands for labour and then dismissed when surplus to requirements. On the other hand, because they are the least stable and lowest paid jobs, it influences immigrants’ level of unemployment. They also create potential opportunity for domestic workers to take on better-paid jobs. One of the clearest examples is time spared by parents on looking after children and household. Thanks to all au- pairs, cleaners, etc. they are able to maximize effectiveness of time, do overtime, have a longer rest. So

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