A point system can select economically desirable
immigrants but it cannot prevent poor labor outcomes for immigrants
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
Superdiversity can result in real economic
benefits—but it also raises concerns about social cohesion
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
South Korea’s engagement with its diaspora can
support the country’s development
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.
Welfare benefits are not a key determinant of
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.
Proactive policies result in a better labor
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.
Immigrants are good for trade
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?