Question

How is a region's human capital affected by emigration? Emigrants provide a needed skill set to their host countries. The loss of skilled labor makes it hard for nations to improve. An influx of unskilled labor provides a service class. The number of educated workers increases exponentially. An uneducated population seeks out employment in urban settings.

Answer 1

The correct answers are:

• The loss of skilled labor makes it hard for nations to improve
• Emigrants provide a needed skill set to their host countries.

Emigrants are the sector of a region's population that leaves that region to establish themselves somewhere else/abroad, generally aiming to find better working and living conditions there.

The human capital is a crucial asset for the economic activities in a region, as it comprises the skills and knowledge that its inhabitants have acquired through education and working experience. Potential and actual workers offer these skills in the labor markets.

Therefore, the loss of population decreases also the stock of human capital in the region and these losses related to such an important asset make it more difficult for the economy to grow. On the other hand, it increases the skill set, the human capital stock of their country of destination.

When emigrants settle somewhere, is because they have found a job position there and they are fulfilling the needs of an employer and an economic sector by providing their skills.