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Immigration, Development and Policy Trade-Offs. Jeff Dayton-Johnson and Theodora Xenogiani OECD Development Centre. 4 th Annual AFD/EUDN Conference 8 November 2006, Paris. I. Interaction of policies . II. Reducing global poverty . III.

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Immigration development and policy trade offs l.jpg

Immigration, Development and Policy Trade-Offs

Jeff Dayton-Johnson and Theodora Xenogiani

OECD Development Centre

4th Annual AFD/EUDN Conference8 November 2006, Paris


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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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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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Interaction of Policies

Objective I:

Labour Market Equilibrium

Policy Instrument I (Migration Policies)

Objective II:

Social

Cohesion

Policy Instrument 2 :

(Social Policies)

Policy Instrument 3 : (Development Assistance)

Objective III:

International Poverty Reduction


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Interaction of Policies

Policy Instrument I (Migration Policies)

Policy Objective X

Policy Instrument 2 :

(Social Policies)

Policy Instrument 3 : (Development Assistance)


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Interaction of Policies

Objective I:

Labour Market Equilibrium

Policy Instrument X

Objective II:

Social

Cohesion

Objective III:

International Poverty Reduction


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Instruments and objectives: coherence and complementarities


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Instruments and objectives: coherence and complementarities


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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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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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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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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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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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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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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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I

Interaction of policies

II

Reducing global poverty

III

Balancing supply and demand in domestic labour markets

IV

Promoting social cohesion

V

Mobilising diaspora networks: a new lever?


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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?

Diaspora networks can…

  • 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”


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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!


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