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Unemployment risk varies greatly across
immigrant groups depending on language skills, culture, and religion
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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Where STEM immigrants were educated strongly
influences their economic success and possibly their impact on
innovation
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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There is no evidence that increases in the
minimum wage have hurt immigrants
According to economic theory, a minimum wage
reduces the number of low-wage jobs and increases the number of available
workers, allowing greater hiring selectivity. More competition for a smaller
number of low-wage jobs will disadvantage immigrants if employers perceive
them as less skilled than native-born workers—and vice versa. Studies
indicate that a higher minimum wage does not hurt immigrants, but there is
no consensus on whether immigrants benefit at the expense of natives.
Studies also reach disparate conclusions on whether higher minimum wages
attract or repel immigrants.
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Despite returnees being a potential resource,
not all developing countries benefit from their return
Return migration can have multiple benefits. It
allows migrants who have accumulated savings abroad to ease credit
constraints at home and set up a business. Also, emigrants from developing
countries who have invested in their human capital may earn higher wages
when they return. However, whether the home country benefits from return
migrants depends on the migrant’s success in accumulating savings and human
capital and on the home country’s ability to make use of returnees’ skills
and investment. To benefit from returnees, home countries need policies that
encourage returnees’ investment and labor market reintegration.
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Immigrants differ in their language proficiency along a range
of characteristics
Language proficiency is a key driver of immigrant integration.
It increases job opportunities and facilitates social and political participation. However,
despite its vital importance, many immigrants never reach adequate proficiency in the host
country language. Therefore, insights into the underlying processes and associated factors are
crucial for designing measures to improve language acquisition. Empirical evidence shows that
immigrants differ in their ability to learn languages, in their experience of everyday
language usage, and their incentives to learn host country languages. This offers a range of
opportunities for public policy intervention.
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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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When countries regularize undocumented
residents, their work, wages, and human capital investment opportunities
change
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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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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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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