Does the global migration matter? The impact of top ten cities migration on native nationals income and employment levels
| Published date | 01 December 2022 |
| Author | Gang Ji,Xiwu Cheng,Desti Kannaiah,Malik Shahzad Shabbir |
| Date | 01 December 2022 |
| DOI | http://doi.org/10.1111/imig.12963 |
International Migration. 2022;6 0:111–128.
|
111
wileyonlinelibrary.com/journal/imig
Received: 20 Jun e 2021
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Revised: 3 Novembe r 2021
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Accepted: 10 Decemb er 2021
DOI: 10.1111/imig.12963
ORIGINAL ARTICLE
Does the global migration matter? The impact of
top ten cities migration on native nationals income
and employment levels
Gang Ji1 | Xiwu Cheng2 | Desti Kannaiah3 | Malik Shahzad Shabbir4
© 2022 The Auth ors. Internation al Migration © 2022 IO M
1School of Accou nting, Anhui Unive rsity of
Finance and Eco nomics, Bengbu , China
2Internation al Exchange Centre , Anhui
Universit y of Finance and Econom ics,
Bengbu, China
3C. H. Sanda ge School of Business ,
Graceland U niversity, Lamon i, Iowa, USA
4Departm ent of Management Scie nces,
Universit y of Lahore, Lahor e, Pakistan
Correspondence
Gang Ji, Scho ol of Accounting, Anh ui
Universit y of Finance and Econom ics,
Bengbu 2330 30, China.
Email: jigang01@outlook.com
Abstract
Since industrial ization migration has been a contin uous
phenomenon, it invigorates innovations and technologies.
Due to this reason, several research questions aroused that
either the migration has any causal effect on employment
opportunities for native people from global developed
economies. Moreover, the role of migration affe cts the
national incom e of the economies due to internal m obility
and expansion of the cities. An instrumental variable model
with a fixed effec t is used to analyse the data. The study
has used twenty years a nnual dat a set start from 2000
to 2019. T he data have taken from World Development
Indicator (WDI) and the Organization for Economic Co-
operation and Development (OECD). The results ex plore
that em ployment oppor tunities at the individual level are
affected by the presence of a foreign workforce. Moreover,
migrant population p ressure could be a possible reason for
the decrease in avail able work opportunities for t he native
labour force. However, the national income does not get
affect by the incursion of migrants from outward bounda-
ries of the internationa l cities. The overall findin gs of this
study concluded that global migration matte rs se riously
but at the individual level and p articular kinds of wor k op-
portunities have stre ssed due to immigration, but the over-
all impact is subtle .
112
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GANG et A l.
INTRODUCTION
Since i ndustrialization and Inter national migrat ion are playing a significant role in the integratio n of the world,
the numb er of immigrant s into wealthy countries dep icts the p icture that h ow income is distributed am ong the
nations, and there can b e many r easons for this inequ ality: wage rate, l iving stand ards, level of educat ion and
government policies. In today 's world, people move across the continent d ue to various re asons for instance;
better job oppor tunities, for higher educ ation, to get marry or to get rid of natur al disasters. Many recent studi es
explore that peopl e from middle- income countries migrate more to higher- income countries as relati vely compare
to lower- middle- income countries. International migra tion fetches high remittances for the origi n country and low
wage cost s from th e host coun try. In 2018, more than seventy- five (75) per cent of remittances were received
by low- and middle- income countrie s, and wi thin countries , the im pact of r emittances is inconclusive, because
highly skilled worker s send fewer remittances to the origin countr y, whereas less- skilled workers are more tended
to send re mittances to th eir home countr y although it i s far less than to high- skilled labour force. Therefore, re-
cently the debate has raised the severe concerns regard ing those migrants from low- and middle- income countries
compete with local- born workers a nd their massive influx. This is the reason to voice a gainst them as they are
the prime inte ntion for the low wage rate of native- born less- skilled workers. Brex it is the exclusive examp le and
result of this debate which not only aloof the great Briton from Europe but also lea d to formulating many new laws
of immigrat ion. So, it can be conclu ded that devel opment is an ongoing process and internationa l migration is a
part of this. So, it needs to evaluate that at wh at extent this phenomenon has bolstered the growt h rate of work-
ers from their count ry of origin towards the host cou ntry. International migrati on provides an equal chance to get
rid of the vicious circle of povert y; it reduces income inequality inside a nd outside the countries. Improvement in
human capita l is another advantage of mig ration beyond the bounda ries of continents.
However, in today's polarized world and popul ation bulge in underdeveloped economies make n atural re-
sources scarcer. S o people from less p rivileged nations have been more li ke to move toward s the economies
where the wage rate is high. There are very strong pieces of evidence that migration leads to increase internation al
output, in today's world when population bulge has become a menace for middle- income and poo r economies.
However, vertic al migration is t he only solutio n to exploit the manpower (Biavaschi et al., 2018; Clemens, 2013,
2014; Clemens et al., 2017) . Since 200 5, migration from poor c ountries to the rich nat ions has subs tantially in-
creased due to a decrea se in transportation cost. Many of the Afric an and Caribbean countries are the origin
state fo r these mig rants, war- torn Arab countries, an d some und erprivileged co mmunities from south Asia also
frequently migr ate towards Europe and the United States of America. Although most of the migrant s who reached
to Europe and the USA are highly skilled wor kers from sou th Asian re gion and the se economies called as brain
drain, the ageing popula tion in Europe is the major reason for the demand for young workers from Africa and Asia .
The effects of migr ation to these developed nations and top ten cities in the world are not limit ed towards income
and acquir ing the assets, but higher edu cation and bet ter opportuniti es to excel in th e international la bour mar-
ket are also another major rea sons to migrate (Bei ne et al., 20 07, 2016; Beine & Parsons, 2015). Pre sently, many
underdeveloped economies are heavily relied on remittances from abroad, though there is a difference between
high- skilled labou r wage rate an d low- skill labour in come from abroa d and their interest to sen d money to th eir
homelands.
It is a known fact that immigration expands the supply of labour in the economy. So, supply side is greater
than demand si de and it de creases th e wage rate in the labour market. In crease in the consumption of basic
KEYWORDS
employment leve l, innovations, Internat ional migration, nationa l
income, OECD
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