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Temporary migration entails benefits, but also costs, for sending and receiving countries

Author

Listed:
  • Joseph-Simon Görlach

    (Bocconi University, Italy, CEPR, and CReAM, UK, and IZA, Germany)

  • Katarina Kuske

    (Bocconi University, Italy)

Abstract

Many migrants do not stay in their host countries permanently. On average, 15% of migrants leave their host country in a given year, many of whom will return to their home countries. Temporary migration benefits sending countries through remittances, investment, and skills accumulation. Receiving countries benefit via increases in their prime-working age populations while facing fewer social security obligations. These fiscal benefits must be balanced against lower incentives to integrate and invest in host country specific skills for temporary migrants.

Suggested Citation

  • Joseph-Simon Görlach & Katarina Kuske, 2022. "Temporary migration entails benefits, but also costs, for sending and receiving countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 503-503, November.
    • Handle: RePEc:iza:izawol:journl:2022:n:503
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    temporary migration; integration; fiscal impact; remittances; entrepreneurship; brain circulation;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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