Performance of migrants

  • Can immigrants ever earn as much as native workers?

    Immigrants initially earn less than natives; the wage gap falls over time, but for many immigrant groups it never closes

    Immigrants contribute to the economic development of the host country, but they earn less at entry and it takes many years for them to achieve parity of income. For some immigrant groups, the wage gap never closes. There is a wide variation across countries in the entry wage gap and the speed of wage assimilation over time. Wage assimilation is affected by year of entry, immigrant skill, ethnicity, and gender. Policies that facilitate assimilation of immigrant workers provide support for education, language, and employment. Such policies can also reduce barriers to entry, encourage naturalization, and target selection of immigrants.
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  • Why do STEM immigrants do better in one country than another?

    Where STEM immigrants were educated strongly influences their economic success and possibly their impact on innovation

    Garnett PicotFeng Hou, April 2019
    Canada, the US, and most Western countries are looking to STEM (science, technology, engineering, and mathematics) immigrants to boost innovation and economic growth. Canada in particular has welcomed many STEM immigrants over the past quarter of a century. In the US, there is an ongoing debate about whether the H–1B visa program is being used effectively to attract more STEM immigrants. Interestingly, significant differences exist between the two countries in earnings and likely the innovation activity of highly educated immigrants, which highlights the likely role of immigration policy in determining such outcomes.
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  • Crime and immigration

    Do poor labor market opportunities lead to migrant crime?

    Brian Bell, January 2019
    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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  • Anonymous job applications and hiring discrimination

    Blind recruitment can level the playing field in access to jobs but cannot prevent all forms of discrimination

    Ulf Rinne, October 2018
    The use of anonymous job applications (or blind recruitment) to combat hiring discrimination is gaining attention and interest. Results from field experiments and pilot projects in European countries (France, Germany, the Netherlands, and Sweden are considered here), Canada, and Australia 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 important cautions to consider.
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  • Do anti-discrimination policies work?

    A mix of policies could be the solution to reducing discrimination in the labor market

    Marie-Anne Valfort, May 2018
    Discrimination is a complex, multi-factor phenomenon. Evidence shows widespread discrimination on various grounds, including ethnic origin, sexual orientation, gender identity, religion or beliefs, disability, being over 55 years old, or being a woman. Combating discrimination requires combining the strengths of a range of anti-discrimination policies while also addressing their weaknesses. In particular, policymakers should thoroughly address prejudice (taste-based discrimination), stereotypes (statistical discrimination), cognitive biases, and attention-based discrimination.
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  • Family-friendly and human-capital-based immigration policy

    Shifting the focus from immigrants’ initial earnings to their propensity to invest in human capital

    Immigrants who start with low earnings, such as family-based immigrants, experience higher earnings growth than immigrants who are recruited for specific jobs (employment-based immigrants). This occurs because family-based immigrants with lower initial earnings invest in human capital at higher rates than natives or employment-based immigrants. Therefore, immigrants who start at low initial earnings invest in new human capital that allows them to respond to the ever-changing needs of the host country’s economy.
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  • Why does unemployment differ for immigrants?

    Unemployment risk varies greatly across immigrant groups depending on language skills, culture, and religion

    Stephen Drinkwater, July 2017
    The adverse effects of unemployment are a cause for concern for all demographic groups but they will be most acute for those experiencing the highest unemployment rates. In particular, high levels of unemployment are observed for a range of immigrant groups across many countries. However, there is considerable variation both across and within countries. It is therefore important to determine the factors that are most likely to cause high rates of unemployment, especially from a migration perspective, and to identify appropriate policy responses (e.g. enhancing human capital and improving job search effectiveness).
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  • Racial wage differentials in developed countries

    The variation of racial wage gaps across and within groups requires differing policy solutions

    Simonetta Longhi, June 2017
    In many developed countries, racial and ethnic minorities are paid, on average, less than the native white majority. While racial wage differentials are partly the result of immigration, they also persist for racial minorities of second and further generations. Eliminating racial wage differentials and promoting equal opportunities among citizens with different racial backgrounds is an important social policy goal. Inequalities resulting from differences in opportunities lead to a waste of talent for those who cannot reach their potential and to a waste of resources if some people cannot contribute fully to society.
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  • Immigrants’ occupational mobility—Down and back up again

    The occupational status of most immigrants initially declines but then increases

    Aslan Zorlu, September 2016
    Evidence suggests that immigrants face an initial decline in their occupational status when they enter the host country labor market but that their position improves as they acquire more country-specific human, cultural, and occupational capital. High-skilled immigrants from countries that are economically, linguistically, and culturally different from the host country experience the greatest decline and the steepest subsequent increase in their occupational status. In the context of sharp international competition to attract high-skilled immigrants, this adjustment pattern is contradictory and discourages potential high-skilled migrants.
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  • What are the consequences of regularizing undocumented immigrants?

    When countries regularize undocumented residents, their work, wages, and human capital investment opportunities change

    Sherrie A. Kossoudji, September 2016
    Millions of people enter (or remain in) countries without permission as they flee violence, war, or economic hardship. Regularization policies that offer residence and work rights have multiple and multi-layered effects on the economy and society, but they always directly affect the labor market opportunities of those who are regularized. Large numbers of undocumented people in many countries, a new political willingness to fight for human and civil rights, and dramatically increasing refugee flows mean continued pressure to enact regularization policies.
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