Migrationonline.cz

The website for critical discussion about migration in Central and Eastern Europe.
11. 6. 04
Hana Kabeleova
Zdroj: migrationonline.cz

Impact of international migration on Czech economy

This shorter text is an attempt to answer the question what is the impact of migration on the Czech Republic’s economy. The author explains that just like in other countries, it is almost impossible to quantify the impact of migrants because certain relevant statistical data are not collected at all (for example what percentage of migrants’ salaries is spent in the Czech Republic and how much is sent to the country of origin). Furthermore, a number of factors and sets of data may only be roughly estimated (for example what percentage of GDP can be attributed to grey economy and the illegal labor market). Today, there are approximately 162,000 foreigners working in the Czech Republic legally, i.e. about 3 percent of the country’s total workforce. These number could be used in conjunction with data on types of jobs and tax returns of foreigners to determine their economic impact on the Czech economy. However, a number of other factors is rather ambiguous as regards the nationality make-up of foreigners working in the country. Around 40 percent of them are Slovaks, who are less likely to invest for example in real estate or follow other long-term strategies, so that their long-term contribution to the economy is relative. At the same time, foreigners who decide not to settle in the Czech Republic do not exploit their social security contributions paid during their residency in the Czech Republic. This may be profitable for the domestic economy, but again makes it very difficult to calculate or at least estimate the long-term impact of foreigners on the economy.
11. 6. 04
Zdroj: migrationonline.cz

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