immigration, development and policy trade-offs jeff dayton-johnson and theodora xenogiani oecd...
TRANSCRIPT
Immigration, Development and Policy Trade-Offs
Jeff Dayton-Johnson and Theodora Xenogiani
OECD Development Centre
4th Annual AFD/EUDN Conference
8 November 2006, Paris
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Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policies I
3
Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policies I
4
What objectives might be affected by migration policies?
Balancing supply and demand in domestic labour markets (high skill, low skill...)
Promoting social cohesion
Reducing international poverty
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What policy instruments are deployed to achieve those objectives?
Migration policies
visas, agreements, amnesties, border controls…
Social policies
social insurance, social assistance, equality of opportunities…
Development co-operation policy
foreign aid, technical assistance…
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Objective I:Labour Market
EquilibriumPolicy Instrument I (Migration Policies)
Policy Instrument 3 : (Development
Assistance)
Interaction of Policies
Objective III:International
Poverty Reduction
Objective II:Social
Cohesion
Policy Instrument 2 : (Social Policies)
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Policy Instrument I (Migration Policies)
Policy Instrument 3 : (Development
Assistance)
Interaction of Policies
Policy Objective X
Policy Instrument 2 : (Social Policies)
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Objective I:Labour Market
EquilibriumPolicy Instrument X
Interaction of Policies
Objective III:International
Poverty Reduction
Objective II:Social
Cohesion
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Instruments and objectives: coherence and complementarities
POLICY OBJECTIVES
Balancing supply and demand in domestic labour markets
Promoting social cohesion
Reducing Global Poverty
Low skill High skill
PO
LICY IN
STR
UM
EN
TS
Migration policies Can reduce (imperfectly) inflows of low-skilled immigrants
Can encourage inflows of skilled service workers
Can impose costs on sector such education, health
Can affect labour markets in LDCs; recruitment of skilled leads to brain drain from poor countries
Social policies Reduce adjustment and absorption costs; could increase inflows (“welfare magnets”)
Can increase demand for immigrant social sector workers
Enhance social cohesion
Development co-operation policies
Can better diffuse the benefits of low-skilled migration; can ease “push” factors for emigration
Can perversely (?) increase the supply of needed workers (brain drain of health and education workers)
? Reduce global poverty
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Instruments and objectives: coherence and complementarities
POLICY OBJECTIVES
Balancing supply and demand in domestic labour markets
Promoting social cohesion
Reducing Global Poverty
Low skill High skill
PO
LICY IN
STR
UM
EN
TS
Migration policies
Can reduce (imperfectly) inflows of low-skilled immigrants
Can encourage inflows of skilled service workers
Can impose costs on sector such education, health
Can affect labour markets in LDCs; recruitment of skilled leads to brain drain from poor countries
Social policies Reduce adjustment and absorption costs; could increase inflows (“welfare magnets”)
Can increase demand for immigrant social sector workers
Enhance social cohesion
Development co-operation policies
Can better diffuse the benefits of low-skilled migration; can ease “push” factors for emigration
Can perversely (?) increase the supply of needed workers (brain drain of health and education workers)
? Reduce global poverty
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Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policies I
12
Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policiesI
13
Reducing global poverty: do OECD country migration policies play a role?
Low-skilled: emigration raises wages and/or reduces search costs for those left behind
High-skilled: emigration has neutral to very negative effects on service provision
Remittances: reduce poverty, raise investment (physical and human capital), may have Dutch-disease effects
Circularity: more choice may reduce the costs of brain drain, increase remittance flows
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If poverty reduction were the objective of OECD country migration policies…
Focus on low skilled mobility: their poverty-reduction impact is greater
Encourage circular movement: may reduce brain drain costs, increase remittance flows
Recruit from lower-income countries
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Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policies I
16
Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policiesI
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Balancing supply and demand in domestic labour markets: what are the
effects of migration?
Wages: tiny negative-to-zero effect, with considerable variation
Employment: displacement vs. job-creation effects
Complementarity of immigrants and native workers
Labour-market efficiency enhancements
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Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policies I
19
Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policies I
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Promoting social cohesion
Social vs. economic integration: the latter powerfully affects the former
Costs of social integration policies certainly raised by higher rates of immigration
“Full integration” or “permanent settlement” – breaking links with migrants’ countries of origin?
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What are the trade-offs?
Developing countries gain from low-skilled emigration; raises insecurity of the native low-skilled
High-skilled workers’ movement benefits OECD countries; imposes a brain drain on their home countries
Social integration is costly
How to reconcile “full integration” with “trans-nationality”?
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Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policies I
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Reducing global poverty II
Balancing supply and demand in domestic labour markets
III
Promoting social cohesionIV
V Mobilising diaspora networks: a new lever?
Interaction of policiesI
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What are diaspora networks?
Formal institutions (e.g. “Home Town Associations”)
Informal institutions (social and entrepreneurial networks)
Meaningfully engaged in OECD countries and in countries of origin
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What do diaspora networks offer?
Information sharing: job opportunities, accessing social services
Asymmetric information: social assistance, credit, insurance
Means of contract enforcement
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What are the limits of diaspora networks?
Networks or family contacts?
Bridging or bonding social capital?
How to “engage” informal networks?
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How can diaspora networks mitigate policy trade-offs?
increase contribution of low-skilled migration to labour-market efficiency
reduce the cost of brain drain to developing countries
reduce the cost of social integration
engender a culture of “double nationality”
Diaspora networks can…
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Concluding remarks
There are genuine trade-offs, and difficult choices
Diaspora networks – like foreign aid – can help reduce, if not eliminate, these tensions
Change attitudes toward “full integration”?
For coherent migration policy – as for coherent development co-operation policy – an optimal mix of policies is needed
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Contact:
Jeff Dayton-Johnson [email protected]
Theodora Xenogiani [email protected]
OECD Development Centrewww.oecd.org/dev
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Merci de votre attention !
Thank you for your attention!