The unemployment impact of immigrant workers in Thailand

Abstract

Copyright © 2017 Inderscience Enterprises Ltd. Labour migration has an effect on both receiving and sending countries such as culture, demography, economy, conflict, and politics. Many studies have found that immigration also benefits the labour export countries, likewise poverty reduction. However, the other argument is that immigrants may replace the natives and steal the job opportunity of citizens because of the competition in the labour market. Unskilled migrants are considered as a cheaper source when compared to unskilled native workers; that's why, most of the firms want the immigrants to work for them than their citizens. As a result, immigrants might replace the native workers in the labour market. The result of this study shows that immigration has a positive effect on employment in Thailand. It helps to reduce unemployment in the long run. However, in the short run it will create more unemployment towards the Thai's labour market.