Migration and ethnicity

Mobility is important for the functioning of markets and society. Contributions to this subject area deal with issues of national and international mobility, such as demand and supply, and what migration means for natives and migrants and for sending and receiving countries.

  • Public attitudes toward immigration—Determinants and unknowns

    Sociopsychological factors are much more important than economic issues in shaping attitudes toward immigration

    Mohsen Javdani, March 2020
    Public attitudes toward immigration play an important role in influencing immigration policy and immigrants’ integration experience. This highlights the importance of a systematic examination of these public attitudes and their underlying drivers. Evidence increasingly suggests that while a majority of individuals favor restrictive immigration policies, particularly against ethnically different immigrants, there exists significant variation in these public views by country, education, age, and so on. In addition, sociopsychological factors play a significantly more important role than economic concerns in driving these public attitudes and differences.
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  • Language proficiency and immigrants’ economic integration

    It is vital to measure language proficiency well, as it crucially determines immigrants’ earnings

    Over recent decades, Western countries have admitted many immigrants from non-traditional regions (e.g. Philippines, India, China), which has coincided with poor economic integration. Language proficiency is an important determinant of economic integration; in addition to being a component of human capital, it plays a key role in facilitating the transmission of other components of human capital. Examining the strengths and weaknesses of objective and subjective measures of language proficiency is crucial for good integration policy, as is understanding the relationship between these measures and earnings, a key indicator of economic integration.
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  • Enforcement and illegal migration Updated

    Enforcement deters immigration but with unintended consequences

    Pia Orrenius, November 2019
    Border enforcement of immigration laws raises the costs of illegal immigration, while interior enforcement also lowers its benefits. Used together, border and interior enforcement therefore reduce the net benefits of illegal immigration and should lower the probability that an individual will decide to illegally migrate. While empirical studies find that border and interior enforcement serve as deterrents to illegal immigration, immigration enforcement is costly and carries unintended consequences, such as a decrease in circular migration, an increase in smuggling, and higher prevalence of off-the-books employment and use of fraudulent and falsified documents.
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  • Immigrants and entrepreneurship Updated

    Business ownership is higher among immigrants, but promoting self-employment is unlikely to improve outcomes for the less skilled

    Immigrants are widely perceived to be highly entrepreneurial, contributing to economic growth and innovation, and self-employment is often viewed as a means of enhancing labor market integration and success among immigrants. Accordingly, many countries have established special visas and entry requirements to attract immigrant entrepreneurs. Research supports some of these stances, but expectations may be too high. There is no strong evidence that self-employment is an effective tool of upward economic mobility among low-skilled immigrants. More broadly prioritizing high-skilled immigrants may prove to be more successful than focusing on entrepreneurship.
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  • Can immigrants ever earn as much as native workers? Updated

    Immigrants initially earn less than natives; the wage gap falls over time, but for many immigrant groups it never closes

    Immigrants contribute to the economic development of the host country, but they earn less at entry and it takes many years for them to achieve parity of income. For some immigrant groups, the wage gap never closes. There is a wide variation across countries in the entry wage gap and the speed of wage assimilation over time. Wage assimilation is affected by year of entry, immigrant skill, ethnicity, and gender. Policies that facilitate assimilation of immigrant workers provide support for education, language, and employment. Such policies can also reduce barriers to entry, encourage naturalization, and target selection of immigrants.
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  • Why do STEM immigrants do better in one country than another?

    Where STEM immigrants were educated strongly influences their economic success and possibly their impact on innovation

    Garnett PicotFeng Hou, April 2019
    Canada, the US, and most Western countries are looking to STEM (science, technology, engineering, and mathematics) immigrants to boost innovation and economic growth. Canada in particular has welcomed many STEM immigrants over the past quarter of a century. In the US, there is an ongoing debate about whether the H–1B visa program is being used effectively to attract more STEM immigrants. Interestingly, significant differences exist between the two countries in earnings and likely the innovation activity of highly educated immigrants, which highlights the likely role of immigration policy in determining such outcomes.
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  • Crime and immigration Updated

    Do poor labor market opportunities lead to migrant crime?

    Brian Bell, January 2019
    Immigration is one of the most important policy debates in Western countries. However, one aspect of the debate is often mischaracterized by accusations that higher levels of immigration lead to higher levels of crime. The evidence, based on empirical studies of many countries, indicates that there is no simple link between immigration and crime, but legalizing the status of immigrants has beneficial effects on crime rates. Crucially, the evidence points to substantial differences in the impact on property crime, depending on the labor market opportunities of immigrant groups.
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  • Taxpayer effects of immigration Updated

    Reliable estimates of taxpayer effects are essential for complete economic analyses of the costs and benefits of immigration

    James P. Smith, October 2018
    Taxpayer effects are a central part of the total economic costs and benefits of immigration, but they have not received much study. These effects are the additional or lower taxes paid by native-born households due to the difference between tax revenues paid and benefits received by immigrant households. The effects vary considerably by immigrant attributes and level of government involvement, with costs usually diminishing greatly over the long term as immigrants integrate fully into society.
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  • Anonymous job applications and hiring discrimination Updated

    Blind recruitment can level the playing field in access to jobs but cannot prevent all forms of discrimination

    Ulf Rinne, October 2018
    The use of anonymous job applications (or blind recruitment) to combat hiring discrimination is gaining attention and interest. Results from field experiments and pilot projects in European countries (France, Germany, the Netherlands, and Sweden are considered here), Canada, and Australia shed light on their potential to reduce some of the discriminatory barriers to hiring for minority and other disadvantaged groups. But although this approach can achieve its primary aims, there are also important cautions to consider.
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  • The portability of social benefits across borders

    With rising international migration, how transferable are benefits, and how can transferability be increased?

    Robert Holzmann, October 2018
    The importance of benefit portability is increasing in line with the growing number of migrants wishing to bring acquired social rights from their host country back to their country of residence. Failing to enable such portability risks impeding international labor mobility or jeopardizing individuals’ ability to manage risk across their life cycle. Various instruments may establish portability. But which instrument works best and under what circumstances is not yet well-explored.
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