What does an increase in migration often lead to in an economy?

An increase in migration typically leads to increased competition for jobs in an economy. When migrants enter the labor market, they add to the available workforce, which can result in more individuals vying for the same positions. This heightened competition can influence wage levels, job availability, and employment dynamics. Employers may benefit from a larger talent pool, potentially enabling them to fill positions more efficiently or at lower wage rates if the supply of labor exceeds demand.

Additionally, increased competition may lead to innovation and higher productivity as both migrants and native workers strive to enhance their skills and stand out in a crowded job market. It is important to consider that while increased competition can present challenges, it can also stimulate economic growth and diversity in the labor force.

The other options, while they may present aspects of migration's impact, do not capture the general and direct relationship that arises from increased migration as clearly as the notion of job competition does. For example, while decreased labor costs (option A) could potentially occur, it is more nuanced and depends on various factors rather than being a straightforward consequence of increased migration. Similarly, while higher GDP per capita (option B) may for some economies be a result of migration, it would not be universally correct as it’s influenced by numerous variables.