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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
higher priority.
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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
diversity.
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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.
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Welfare benefits are not a key determinant of
migration
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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Proactive policies result in a better labor
market integration
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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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?
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Retiree migration can have economic benefits but
can also lead to intergenerational conflict in education spending
With the aging of populations, particularly in
more developed countries, retirees are becoming a politically influential
group. Government budgets have been feeling the strain on social insurance,
health care, and other programs that benefit the elderly. Yet spending on
these programs has often come at the expense of other programs such as
education, which benefit primarily the younger population. Attracting
retirees has been viewed as an important avenue of economic development,
with positive impacts on revenue and expenditure. However, it can also have
a negative impact on education spending potentially resulting in
intergenerational fiscal conflict.
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Harmonizing asylum policies, a noble goal, does
not produce the best outcomes for refugees or host country populations
Policy toward asylum-seekers has been
controversial. Since the late 1990s, the EU has been developing a Common
European Asylum System, but without clearly identifying the basis for
cooperation. Providing a safe haven for refugees can be seen as a public
good and this provides the rationale for policy coordination between
governments. But where the volume of applications differs widely across
countries, policy harmonization is not sufficient. Burden-sharing measures
are needed as well, in order to achieve an optimal distribution of refugees
across member states. Such policies are economically desirable and are more
politically feasible than is sometimes believed.
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Avoiding segregation and compensating for parental disadvantage
can reduce migrants’ educational achievement gaps
As global migration flows increase, so do the number of migrant
students in host country schools. Yet migrants’ achievement scores lag well behind those of
their native-born schoolmates. Performance gaps are explained largely by differences in
migrant parents’ socio-economic background, cultural capital, and language skills. Education
policy needs to focus on language teaching, parental involvement, diversity training, and
beneficial social interaction between immigrant and native-born populations. With the wealth
of many industrialized countries threatened by a lack of qualified labor, education of
immigrants should be an important priority.
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Linguistic and cultural barriers affect
international migration flows
As migration flows to developed countries have
increased in recent decades, so have the number of countries from which
migrants arrive. Thus, it is increasingly important to consider what role
differences in culture and language play in migration decisions. Recent work
shows that culture and language may explain migration patterns to developed
countries even better than traditional economic variables, such as income
per capita and unemployment rates in destination and origin countries.
Differences in culture and language may create barriers that prevent the
full realization of the potential economic gains from international
mobility.
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