This article analyzes the effects of European countries accepting refugees from a war-torn Middle East. One fear that people have is that allowing many refugees into a nation is that they will drag down wages. This however is not true according to the article. The author even notes that natives displaced by refugees often find themselves obtaining new jobs that are higher paying.
Their are even some positives economically that refugees can bring a nation. It is a well known fact that Europe is aging at a rapid rate. Likewise, most of the refugees are perceived to be young. When they begin to earn an income they can help counteract the aging population and pay into the pension system to help sustain it. In the short term refugees will add an expense to GDP through welfare payments. It is important to note though that refugees will also contribute to GDP and essentially offset these costs. Also, evidence shows that after some time a very small rate of refugees will still receive welfare benefits. With evidence from the article it seems to me that in the long run refugees will surely help Europe's economy, and offset the added expense that they will cause in the short run.
http://www.economist.com/news/finance-and-economics/21688938-europes-new-arrivals-will-probably-dent-public-finances-not-wages-good-or
This is very new to me! The interoperation that refugees actually helping the struggling economies in Europe is something I never would have thought of. It makes perfect sense that these refugees will work harder and eventually earn higher paying jobs, hence increasing GDP. I found it very cool that this analysis will help offset the expense that international countries will face in the short-term
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