Emigration

DEFINITION of 'Emigration'

Emigration is the relocation of people from one country to reside in another. People emigrate for many reasons, include increasing one's chance of employment or improving quality of life. Emigration affects the economies of the countries involved in both positive and negative ways depending on the current state of the countries' economies.

BREAKING DOWN 'Emigration'

When people leave a country, they lower the nation's labor force and consumer spending. If the country they are leaving has an oversaturation of the labor force, this can relieve unemployment rates as a positive effect of emigration. On the other hand, the countries receiving the emigrants tend to benefit from more available workers, who also contribute to the economy by spending money. Most countries heavily regulate the number of people emigrating to the country and create strict rules and protocols for emigration.

Fiscal Impact of Emigration

When people emigrate to a new country, they pay taxes to the new country based on earnings and other factors. They also pay sales tax on purchases when applicable. These people qualify for social services provided by that country, such as education for dependent children, universal health care and other services depending on the country. Each country needs to ensure the new tax revenues match the additional expense for social services provided to the emigrants and their families.

Effect of Emigration on Job Market and Wages

When large groups of emigrants enter the job market in a new country, there is an effect on the available number of jobs and the amount of wages one can ask for a particular job. The new country must have enough job openings to support emigration without damaging the chances of the native-born labor force finding employment. Additionally, if an emigrant takes a job for a lower wage than typically offered to the native labor force, it can lower wages for both emigrants and the native population.

Rules for Emigration to the United States

The Immigration and Naturalization Act serves as the basis for emigration into the United States and allows for 675,000 permanent immigrants yearly. The country also provides emigration status to a certain number of refugees separate from this number. When choosing emigrants, the United States examines things such as family ties and unique job qualifications, and creating diversification within the country. The goal of this Act is to protect the American economy by making positive additions to the workforce and maintaining a healthy job market for American citizens.

RELATED TERMS
  1. Brain Drain

    A slang term for a significant emigration of educated or talented ...
  2. Provident Fund

    A compulsory, government-managed retirement savings scheme used ...
  3. Dollar Drain

    When a country imports more goods and services from another country ...
  4. Retention Tax

    A mandatory tax placed on income that is earned on investments ...
  5. Job Market

    A market in which employers search for employees and employees ...
  6. Country Basket

    A selection of countries that are grouped together in order to ...
Related Articles
  1. Economics

    5 Economic Challenges Spain Faces in 2016

    Learn about five economic challenges Spain faces in 2016 and what they mean for Spain's economy in light of recent elections and changes in government.
  2. Professionals

    Countries With The Lowest Unemployment Rates

    A high U.S. unemployment rate may not be as restrictive as you think. Find out where the jobs really are.
  3. Forex Education

    Forex Tutorial: Economic Theories, Models, Feeds & Data

    There is a great deal of academic theory revolving around currencies. While often not applicable directly to day-to-day trading, it is helpful to understand the overarching ideas behind the ...
  4. Investing Basics

    George Soros Biography

    George Soros is an American hedge fund manager and philanthropist. Born in Hungary in 1930 to Jewish parents, he survived the Nazi occupation and one of the fiercest battles of World War II in ...
  5. Personal Finance

    5 Developed Countries That Welcome Expats

    Investigate these expat havens if you seek a developed country with low barriers for getting a permanent resident visa – sometimes even citizenship.
  6. Economics

    Understanding Structural Unemployment

    Structural unemployment is an economic miss-match where workers fail to find jobs and employers with available jobs fail to find workers.
  7. Forex

    Main Factors That Influence Exchange Rates

    The exchange rate is one of the most important determinants of a country's relative level of economic health, and can impact your returns.
  8. Retirement

    Where to Retire Abroad? Follow Your Fellow Expats

    Retiring abroad is exciting and can save you money. Here's a list of countries where you're likely to find the most bang for your buck.
  9. Forex Fundamentals

    6 Factors That Influence Exchange Rates

    An in depth look at out how a currency's relative value reflects a country's economic health and impacts your investment returns.
  10. Economics

    What does Current Account mean?

    The current account reflects the difference between a country’s savings and investments.
RELATED FAQS
  1. What economic indicators are most used when forecasting an exchange rate?

    Discover what economic indicators are most widely used to forecast a country’s exchange rate and how various factors influence ... Read Answer >>
  2. Should a Canadian citizen who lives and works in the U.S. continue to contribute ...

    No, a U.S. resident should not contribute to a RRSP account. RRSP contribution rules allow you to contribute a certain percentage ... Read Answer >>
  3. Is Brazil a developed country?

    Understand why Brazil's low per capita gross domestic product; high birth and death rates; and subpar living conditions classify ... Read Answer >>
  4. Is it possible for a country to have a comparative advantage in everything?

    Learn whether one country can have a comparative advantage in everything and what the difference between comparative advantage ... Read Answer >>
  5. Is Argentina a developed country?

    Learn why Argentina, as of 2015, is not classified as a developed country despite having a qualifying gross domestic product ... Read Answer >>
  6. How do I transfer my credit card history from one country to another?

    Find out about some of the reasons why it is currently impossible to transfer your credit history to another country if you ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center