Answer to Question #98470 in Macroeconomics for annie

Question

What are the good and bad aspects of labor mobility between countries?

Is labor mobility helping to the developing and/or developed countries?

Do you think any international policies or national policies should be implemented to regulate or encourage or restrict the immigration of the workforce?

Answer 1

The good aspects of labor mobility include;

(a)  Increased labor mobility gives workers an opportunity to improve their financial situations.

(b)  It can increase the supply of labor as workers enter the economy.

The bad aspects of labor mobility include;

(a)  It can lead to increase unemployment since its supply would be more than its demand.

(b)  One country might suffer shortage of skilled workers hence affecting its labor economy

Labor mobility is more advantageous to developed countries than developing ones. For developed countries labor mobility results in increased production, increased skilled labor and general economic growth is realized.

Immigration of workforce should be regulated in order to manage unemployment in a country and to manage the population growth.