Migration policy

  • 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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  • 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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  • 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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  • Engaging the diaspora in an era of transnationalism

    South Korea’s engagement with its diaspora can support the country’s development

    Changzoo Song, May 2014
    Since the 1990s, South Korea’s population has been aging and its fertility rate has fallen. At the same time, the number of Koreans living abroad has risen considerably. These trends threaten to diminish South Korea’s international and economic stature. To mitigate the negative effects of these new challenges, South Korea has begun to engage the seven million Koreans living abroad, transforming the diaspora into a positive force for long-term development.
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  • The welfare magnet hypothesis and the welfare take-up of migrants

    Welfare benefits are not a key determinant of migration

    Corrado Giulietti, June 2014
    Contrary to the welfare magnet hypothesis, empirical evidence suggests that immigration decisions are not made on the basis of the relative generosity of the receiving nation’s social benefits. Even when immigrants are found to use welfare more intensively than natives, the gap is mostly attributable to differences in social and demographic characteristics between immigrants and non-immigrants rather than to immigration status per se. Moreover, evidence in some countries suggests that immigrants exhibit less welfare dependency than natives, despite facing a higher risk of poverty.
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  • What determines the net fiscal effects of migration?

    Proactive policies result in a better labor market integration

    Holger Hinte, June 2014
    Do migration policies affect whether immigrants contribute more to public finances than they receive as transfer payments? Yes. But simply accumulating the annual fiscal transfers to and fiscal contributions by migrants is not sufficient to identify the policy impact and the potential need for reform. What is also required is measuring the present value of taxes contributed and transfers received by individuals over their lifespans. Results underscore the need for, and the economic benefits of, active migration and integration strategies.
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  • Enforcement and illegal migration

    Enforcement deters immigration with many unintended consequences

    Pia Orrenius, June 2014
    Border enforcement of immigration laws attempts to raise the costs of illegal immigration, while interior enforcement also lowers the benefits. Border and interior enforcement therefore reduce the net benefits of illegal immigration and should lower the probability that an individual will decide to migrate. While some empirical studies find that border and interior enforcement serve as significant deterrents to illegal immigration, immigration enforcement is costly and carries significant unintended consequences, such as an increase in fraudulent and falsified documents and rising border death rates as migrants undertake more dangerous crossings.
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  • The impact of migration on trade

    Immigrants are good for trade

    Murat Genç, June 2014
    International trade and migration are two important dimensions of globalization. Although governments have been very willing to open their borders to trade, they have not been so liberal in their immigration policies. It has been suggested, however, that a causal positive link might exist between immigration and trade. Could governments further increase international trade by also opening their doors to immigrants? If they could, does it matter what type of immigrants are encouraged? And is there a saturation level of immigrants after which this positive impact disappears?
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  • How to attract foreign students

    International student mobility can be good for migrating students, their home country, the host country, and those remaining at home

    Arnaud Chevalier, July 2014
    To expand the skilled workforce, countries need to attract skilled migrants. One way of doing this is by attracting and retaining international students. Empirical evidence suggests that concerns about brain drain—that is, the emigration of highly qualified workers—are overblown and that student migration can positively affect economic growth in both sending and receiving countries. However, migrants themselves reap most of the gains, through higher earnings. So that in the end, international student mobility can be beneficial for all participants: migrating students and those who remain at home, as well as home and host societies.
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  • The good and the bad in remittance flows

    Remittances have the potential to lift up developing economies

    Catalina Amuedo-Dorantes, November 2014
    Remittances have risen spectacularly in recent decades, capturing the attention of researchers and policymakers and spurring debate on their pros and cons. Remittances can improve the well-being of family members left behind and boost the economies of receiving countries. They can also create a culture of dependency in the receiving country, lowering labor force participation, promoting conspicuous consumption, and slowing economic growth. A better understanding of their impacts is needed in order to formulate specific policy measures that will enable developing economies to get the greatest benefit from these monetary inflows.
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