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.

  • Circular migration

    Why restricting labor mobility can be counterproductive

    In the popular immigration narrative, migrants leave one country and establish themselves permanently in another, creating a “brain drain” in the sending country. In reality, migration is typically temporary: Workers migrate, find employment, and then return home or move on, often multiple times. Sending countries benefit from remittances while workers are abroad and from enhanced human capital when they return, while receiving countries fill labor shortages. Policies impeding circular migration can be costly to both sending and receiving countries.
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  • Do migrants take the jobs of native workers?

    Migrants rarely take native workers’ jobs, and they boost employment effects in the long term

    Amelie F. Constant, May 2014
    Neither public opinion nor evidence-based research supports the claim of some politicians and the media that immigrants take the jobs of native-born workers. Public opinion polls in six migrant-destination countries after the 2008–2009 recession show that most people believe that immigrants fill job vacancies and many believe that they create jobs and do not take jobs from native workers. This view is corroborated by evidence-based research showing that immigrants—of all skill levels—do not significantly affect native employment in the short term and boost employment in the long term.
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  • Using a point system for selecting immigrants

    A point system can select economically desirable immigrants but it cannot prevent poor labor outcomes for immigrants

    Massimiliano Tani, May 2014
    Restricting immigration to young and skilled immigrants using a point system, as in Canada, Australia, and New Zealand, succeeds in selecting economically desirable immigrants and provides orderly management of population growth. But the point system cannot fix short-term skilled labor shortages in a timely manner nor prevent poor labor market outcomes for immigrants, since domestic employers can undervalue schooling and work experience acquired abroad. Furthermore, the efficacy of a point system can be compromised if unscreened visa categories receive higher priority.
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  • The brain drain from developing countries

    The brain drain produces many more losers than winners in developing countries

    The proportion of foreign-born people in rich countries has tripled since 1960, and the emigration of high-skilled people from poor countries has accelerated. Many countries intensify their efforts to attract and retain foreign students, which increases the risk of brain drain in the sending countries. In poor countries, this transfer can change the skill structure of the labor force, cause labor shortages, and affect fiscal policy, but it can also generate remittances and other benefits from expatriates and returnees. Overall, it can be a boon or a curse for developing countries, depending on the country’s characteristics and policy objectives.
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  • Crime and immigration

    Do poor labor market opportunities lead to migrant crime?

    Brian Bell, May 2014
    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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  • Roma integration in European labor markets

    Nuclei of evidence tell a grim story, but a veil of ignorance impedes policy efforts

    Martin Kahanec, May 2014
    The Roma are the largest ethnic minority in Europe—as well as one of the most disadvantaged. A triple vicious circle is at play: Substandard socio-economic outcomes reinforce each other; they fuel negative attitudes and perceptions, leading to ill-chosen policies; and segmentation is perpetuated through (statistical) discrimination. A severe lack of data precludes progress. However, existing bits of evidence point to virtuous ways out.
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  • Skill-based immigration, economic integration, and economic performance

    Benefiting from highly skilled immigrants requires a complementary mix of immigrant selection and economic integration policies

    Studies for major immigrant-receiving countries provide evidence on the comparative economic performance of immigrant classes (skill-, kinship-, and humanitarian-based). Developed countries are increasingly competing for high-skilled immigrants, who perform better in the labor market. However, there are serious challenges to their economic integration, which highlights a need for complementary immigration and integration policies.
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  • Do immigrant workers depress the wages of native workers?

    Short-term wage effects of immigrants are close to zero—and in the long term immigrants can boost productivity and wages

    Giovanni Peri, May 2014
    Politicians, the media, and the public express concern that immigrants depress wages by competing with native workers, but 30 years of empirical research provide little supporting evidence to this claim. Most studies for industrialized countries have found no effect on wages, on average, and only modest effects on wage differentials between more and less educated immigrant and native workers. Native workers’ wages have been insulated by differences in skills, adjustments in local demand and technology, production expansion, and specialization of native workers as immigration rises.
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  • Superdiversity, social cohesion, and economic benefits

    Superdiversity can result in real economic benefits—but it also raises concerns about social cohesion

    Paul Spoonley, May 2014
    Empirical studies have found that achieving superdiversity—a substantial increase in the scale and scope of minority ethnic and immigrant groups in a region—can provide certain economic benefits, such as higher levels of worker productivity and innovation. Superdiversity can also provide a boost to local demand for goods and services. Other studies have found that these benefits can be compromised by political and populist anxieties about ethnic, religious, and linguistic diversity.
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  • Anonymous job applications and hiring discrimination

    Anonymous job applications can level the playing field in access to jobs but cannot prevent all forms of discrimination

    Ulf Rinne, May 2014
    The use of anonymous job applications to combat hiring discrimination is gaining attention and interest. Results from a number of field experiments in European countries (France, Germany, the Netherlands, and Sweden are considered here) 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 some cautions to consider.
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