The influx of refugees

The influx of refugees

Introduction

The influx of refugees from one country to another has been a recurrent phenomenon facing many parts of the world, particularly in regions such as European countries, USA, Australia and Canada. In the recent years, they have been a huge number of refugee and asylum seekers in the before-mentioned areas. The inflow of the refugees creates an economic crisis in many countries. The refugees’ crisis has made some administrations to enact legal regulations for limiting entry of immigrants or the people seeking asylum. Economically, refugees put a lot of pressure to the government since much funding is required in reacting to the inflow of refugees. It forces some government to spend more on the budget that is needed to meet the vulnerable needs of refugees in the countries hosting refugees. The inflow of refugees has adversely impact of an employment outcome in the host countries. It has the negative impact on the wages outcomes. Some residents in the host countries encounter strain on employment among the information employees as an impact of refugee influx and stain to the formal employment due to increase in social services in the regions. These are some of the few legitimate means of regulating accessibility to Europe. Due to economic reasons, refugees should be allowed in a country because they cause employment and affect consumer price level that is linked to interest rates. The permitting of refugees create much spending because much is needed to afford them.

Refugees cause unemployment in host countries

A huge number of employees encounter increased job competition, and their wages are decreased due to pressure from refugees, who offer cheap labor. According to Phillimore & Goodson (2006), when a country is faced with small skilled refugees, the low skilled workers in the host country experience a decrease in their wages since business people opt for workers at a cheap cost.  Some of the refugees cause a slight increase formal employment because of increase in social service (p.1722). However, a significant number of informal employment has caused a negative impact on the labor force. The unemployment rates and regular rates have raised, the work forces and job seeking rates have decreased among the citizens of the host countries.

The influx of immigrants has a distributional effect since refugees receive social services.  This cause a wage differential among the individuals of the host country. According to Ceritoglu, et al. (2017) when the refugees pay less in the social services as well as taxes, the tax burden is shifted to the society (p.16). This affects the labor markets as well as the budgetary effects.  The effect of the inflow of refugees is taken away jobs from the native employees, which causes a reduction in the wages.

Permitting refugees to make the prices to decrease, and it brings in deflation

A study using a difference-in-differences method found that consumer prices drop in the host countries as an impact of refugee influxes. This adverse effect is consistent and has magnitude decrease that is nearly 2.5 percent, which causes the prices of products and services to fall by the same margin. The prices of products that are produced in the formal sector differ from those generated by the informal sector (Zetter, 2010). The reduction in prices in the formal sector is estimated to be 4 percent but in the official sector is nearly 0 percent.  The informal sector provides a means by which the immigration influx cause a price decrease.

According to Binnur & Semih, (2016), raise in the supply of informal employees produces labor cost gains in the informal sectors, which causes a reduction in the prices of products generated by those in the sectors (p.676).  The excellent prices reduction in the labor sector in the host countries are due to the immigration influx. The prices decrease entirely originate from the employees from the informal sectors.  The refugee inflows cause substitution of the casual workers in the industry with high informal concentrations.  The replacement produces labor cost benefits as well as competition in the right markets, which cause a decrease in consumer prices.

There is the huge cost of affording refugees such as adopting and caring value.

Taking care of refugees in the host countries lie on the determinations to improve the public systems of the country to deal the extra burden. The immigrant influxes end up making a huge portion of the population in each year. The aid interventions have a hard time in taking care of health for the refugees. The garbage collection, as well as need for investment, take a huge chunk of money.  According to Traublinger (2014), the cost for jobs as well as housing drives prices up making it hard for the administration and aid agencies to care for refugees (p.32). In some of the host regions, the hosts have a difficult time in controlling infectious disease around the camps.  Provision of basic commodities to the refugees is also a huge challenge that calls for the intervention of the host’s administrations and even international aid organization.

The adapting cost also increases among the host. There is the high cost of adapting to social life for the refugees. Adapting to educational attainment and language barrier in some of the host regions skyrocket the prices of coping with such challenges.

Counter argument: The refugees should be helped allowed in the host countries. They should be allowed and given enough support because they are disadvantaged people seeking for help. According to Hugo (2013), the economic issues caused by the huge inflow of refugees should be addressed by the host countries with assistance from the international community (p.34). Instead of blocking them, there should be development projects that help refugees to develop economically and socially. Such developments should be shared by regional bloc and through interventions of the humanitarian world organization. There should be present of refugee-related development support as a regular section of some of the consultative processes.

Conclusion

The huge prices and negative economic consequences experienced by the host countries create an economic crisis, which can be avoided if the refugee inflows are regulated or limited in the host regions. There should much support to help address the issues faced by the refugees and the host regions to ease the economic burden resulting from refugees. Good development strategies must be implemented to prevent the impact of hosting a significant number of refugees since they cause some unforeseeable challenges.  Some residents in the host countries encounter strain on employment among the information employees as an impact of refugee influx and stain to the formal employment due to increase in social services in the regions. Due to economic reasons, refugees should be allowed in a country because they cause jobs and affect consumer price level that is linked to interest rates. The permitting of refugees create much spending because much is needed to afford them.

References

Binnur, B.  & Semih T. (2016) Immigration and prices: quasi-experimental evidence
from Syrian refugees in Turkey. J Popul Econ (29), 657–686.
Zetter, R. (2010). Are refugees an economic burden or benefit? General article, 51-52
Phillimore, J & Goodson, L. (2006). Problem or Opportunity? Asylum Seekers, Refugees,             Employment    and Social Exclusion in Deprived Urban Areas. Urban Studies, 43 (10),             1715–1736.

Ceritoglu, E et al. (2017). The impact of Syrian refugees on natives’ labor market outcomes in      Turkey: evidence from a quasi-experimental design. IZA Journal of Labor Policy, 6    (1), 1-28.

Hugo, G. (2013). The Economic Contribution of Humanitarian Settlers in Australia.          International Migration. 52 (2), 32-49.
Mackenzie, D. (2013). Lasting Costs Of Syrian War. New Scientist 219, (2934), 1-2.

Traublinger, J. (2014). Boat Refugees in the Mediterranean. Hamburg: Diplomica Verlag.