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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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Remittances have the potential to lift up
developing economies
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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Benefiting from highly skilled immigrants
requires a complementary mix of immigrant selection and economic integration
policies
There is increasing global competition for
high-skilled immigrants, as countries intensify efforts to attract a larger
share of the world's talent pool. In this environment, high-skill immigrants
are becoming increasingly selective in their choices between alternative
destinations. Studies for major immigrant-receiving countries that provide
evidence on the comparative economic performance of immigrant classes
(skill-, kinship-, and humanitarian-based) show that skill-based immigrants
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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While legalization benefits most undocumented
immigrants, deciding how to regularize them is challenging
Addressing unauthorized immigration is
controversial. Countries have adopted a variety of legalization programs,
ranging from temporary visa programs to naturalization. Research in the US
focused on past amnesty programs finds improved labor market outcomes for
newly legalized immigrants. Findings are more mixed for European countries.
Studies suggest that regularization of undocumented immigrants can result in
increased use of public benefits and reduced formal labor market
participation. Despite widespread disagreement, legalization is widely used
in practice.
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Sustained economic growth led to reduced
unemployment and real earnings growth, but prosperity has not been equally
shared
Since 1991, the Australian economy has
experienced sustained economic growth. Aided by the commodities boom and
strong public finances, the Australian economy negotiated the global
financial crisis without falling into recession. Over this period there were
important structural changes, with increasing labor force participation
among the elderly and the continuing convergence of employment and
unemployment patterns for men and women. However, some recent negative
trends include a rise in unemployment, especially long-term unemployment, a
deteriorating youth labor market, and a stagnant gender earnings gap.
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Economic integration of refugees into their host
country is important and benefits both parties
Refugee migration has increased considerably
since the Second World War, and amounts to more than 50 million refugees.
Only a minority of these refugees seek asylum, and even fewer resettle in
developed countries. At the same time, politicians, the media, and the
public are worried about a lack of economic integration. Refugees start at a
lower employment and income level, but subsequently “catch up” to the level
of family unification migrants. However, both refugees and family migrants
do not “catch up” to the economic integration levels of labor migrants. A
faster integration process would significantly benefit refugees and their
new host countries.
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International student mobility can be good for
migrating students, their home country, the host country, and those
remaining at home
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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Many proposed policies on skilled migration do
little to improve skill stocks or development outcomes, but promising
options exist
Immigration officials in rich countries are
being asked to become overseas development officials, charged with
preventing skilled workers from leaving poor countries, where their skills
are needed. Some advocates urge restrictions or taxes on the emigration of
doctors and engineers from developing countries. Others urge incentives to
encourage skilled workers to remain or return home or policies to facilitate
their interactions with home countries. Regulations often reflect
compassionate and political sentiments without clear evidence that the
regulations achieve the desired development goals and avoid pernicious side
effects.
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