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There is more emigration than immigration in Ireland at present - Leaving Cert Economics - Question c - 2010
Question c
There is more emigration than immigration in Ireland at present. (i) Explain the two underlined terms. (ii) State and explain two reasons for the above situation. ... show full transcript
Worked Solution & Example Answer:There is more emigration than immigration in Ireland at present - Leaving Cert Economics - Question c - 2010
Step 1
Step 2
State and explain two reasons for the above situation.
Answer
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Economic recession in Ireland: The current economic downturn has led to increased unemployment and fewer job opportunities. Many individuals are leaving in search of better prospects in other countries, as investments and foreign direct investments (FDI) are relocating to lower-cost economies.
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Wage rates in Ireland: With the decline in job availability, wage rates in Ireland have also been falling. This reduced standard of living pushes individuals to seek better living conditions and salaries abroad.
Step 3
State and explain the possible economic effects which increased emigration may have on each of the following:
Answer
• Irish Labour market: Increased emigration can lead to a decrease in the size of the labor market, which might result in reduced dependency ratios. However, this may also lead to labor shortages and a decrease in overall productivity as experienced workers leave Ireland.
• Demand for State services: With a declining population, the demand for state services such as healthcare, education, and housing may decrease. This could alleviate pressure on public services, although it may also result in reduced government revenue due to fewer taxpayers.