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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

Immigration, Development and Policy Trade-Offs

Jeff Dayton-Johnson and Theodora Xenogiani

OECD Development Centre

4th Annual AFD/EUDN Conference8 November 2006, Paris

slide2

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?

slide3

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?

what objectives might be affected by migration policies
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
what policy instruments are deployed to achieve those objectives
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…

slide6

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

slide7

Interaction of Policies

Policy Instrument I (Migration Policies)

Policy Objective X

Policy Instrument 2 :

(Social Policies)

Policy Instrument 3 : (Development Assistance)

slide8

Interaction of Policies

Objective I:

Labour Market Equilibrium

Policy Instrument X

Objective II:

Social

Cohesion

Objective III:

International Poverty Reduction

slide11

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?

slide12

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?

reducing global poverty do oecd country migration policies play a role
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
if poverty reduction were the objective of oecd country migration policies
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
slide15

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?

slide16

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?

balancing supply and demand in domestic labour markets what are the effects of migration
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
slide18

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?

slide19

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?

promoting social cohesion
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?
what are the trade offs
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”?
slide22

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?

slide23

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?

what are diaspora networks
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
what do diaspora networks offer
What do diaspora networks offer?
  • Information sharing: job opportunities, accessing social services
  • Asymmetric information: social assistance, credit, insurance
  • Means of contract enforcement
what are the limits of diaspora networks
What are the limits of diaspora networks?
  • Networks or family contacts?
  • Bridging or bonding social capital?
  • How to “engage” informal networks?
how can diaspora networks mitigate policy trade offs
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”
concluding remarks
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
slide29
Contact:

Jeff Dayton-Johnson jeff.dayton-johnson@oecd.org

Theodora Xenogiani theodora.xenogiani@oecd.org

OECD Development Centrewww.oecd.org/dev

slide30
Merci de votre attention !

Thank you for your attention!

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