Immigration : The Movement of Human Capital

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Immigration The Movement of Human Capital

• Chris, Jun, and Saif 2007

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Outline

• Introduction
• History and trends of East Asian migrants
• Effects and change of labour types of majority
  immigrants
  
• Global competition for human capital
• Conclusion

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Introduction

• International migration is experienced by many
  countries. The revolutions of communication and
  transports have increased globalization and
  integration of international economy.

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Intro. Contd

• Our presentation attempts to reveal some history
  and trends in immigration, the transition of
  unskilled immigrants to the so called economic
  immigrants of Asian immigrants, and the global
  competition of human capital among nations

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History and Trend
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History and Trend - China

• Traditionally a large exporter of unskilled
  labour, as illegal immigrants.
  
• Recently, illegal immigrants have decreased,
  emigrants consists more of economic immigrants.
  
• Emigration rates increasing sharply since 2001.
• In 1995, 13,309 Chinese immigrants went to
  Canada. Increased almost three times to 36,411 in
  2004.
  
• Possibly following the footsteps of more advanced
  Asian countries (Republic of Korea, Hong Kong,
  Japan?)
  
• economic immigrants---permanent residents
  selected for their skills and ability to
  contribute to Canadas economy ---fact and
  figure

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Hong Kong

• After 1949 -- massive inflow of Chinese
  immigrants, explosion of population
  
• Since 1970s, steady but controlled immigration
  from China. Increasing number of middle class
  children sent to overseas.
  
• After 1989 Tianenmen Incident, rapid increase of
  emigrants. Estimated 62,000 emigrants per year in
  1990s (APMRN)
  
• Opening of China's market in 1990s a pull factor
  for returning immigrants

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..H.K., contd

• Currently only 0.9 child-per-Woman. Quickly
  declining death rates. Aging population
  supplemented by increasing immigrants from
  Mainland China. Net migration rate 5.24 as of Jan
  1 2005.
• In Hong Kong, concerns for 'brain drain' in the
  1990s. Policy changes made to allow 10,000
  professionals from China to work in Hong Kong
  annually
• Numbers of immigrants emigrants. Gain in
  population
  
• Many of Hong Kong's emigrants started their own
  businesses overseas, creating transnational
  business.
  

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Republic of Korea

• 3 phrases
• early 1900s a small of cheap labours
• mid 1900s after the Korea War--war brides,
  orphans and students
  
• late 1900s, after 1965(liberalization of US
  national quota system), and recent immigrants --
  families
  

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India

• many Indians chose to immigrate to the United
  States because of job and educational
  opportunities.
  
• -the quota on Indian immigration was eliminated
  in the 1960s
  
• -the new Indian immigrants are not poor farmers
  or indentured servants
  
• -they have come to America to profit form their
  knowledge.
  
• 1960s to present.
• -Today, the Indian American population measures
  over 1.6 million
  
• -Indian Americans are the third largest
  constituency in the Asian American community
  (growing at 7.6 today)
  
• - The overall growth rate for Indian Americans
  from 1990 to 2000 was almost 106, the largest in
  the Asian American community.

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Implication for history and trend

• The immigration rates of China and India are
  increasing however, we predict this rate of
  China will decrease in 50 years as their rapid
  economic growth and decreasing birth rate.? one
  child policy
• H.K. and Korea have decreasing birth rates.
  Import labor immigrants are needed.

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Migrant type

• Cheap labour in the earlier migrating waves.
• Initially people migrated to North America for
  better job opportunities many failed and ended
  up with unskilled jobs.
  
• The increasing skilled labour needed in both
  developed and developing countries.
  
• Today, human capital from foreign countries is
  being utilized more efficiently, particularly in
  the innovation and technology sector in the US.
  

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contd

• However, unions and professional organizations do
  present some barriers to the efficient use of
  human capital.
  

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A look into International Students

• Trend of Asian students studying abroad.
• More students coming out of developing countries
  such as China and India.
  
• Less coming out of developed economies such as
  Hong Kong and Korea.
  
• For the following graphs
• Baby blue represents the United States.
• Dark blue represents Australia.
• Green represents Canada.

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Chinese International student flow 1999-2004
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Hong Kong International student flow 1999-2004
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Korean International student flow 1999-2004
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Indian International student flow 1999-2004
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Combined study of Duke School of Engineering and
UC Berkeley School of Information

• Revenue and Employment Data
• To infer information on all of the 28,776
  companies founded in the last ten years, we
  
• employed a sampling distribution of a proportion,
  and performed a finite population
  
• correction. Using this method, we can say with
  95 confidence that 25.3 1.8 of
  
• the 28,776 engineering and technology companies
  founded from 1995 to 2005 had an
  
• immigrant key founder. This equates to 7,283
  518 companies. These 7,283 companies
  
• produced more than 52 billion dollars in 2005
  sales and in 2005 had just under 450,000
  
• employees.
• Immigrant-Founder Origin Data
• The immigrant founders of U.S. engineering and
  technology companies come from all
  
• over the world. Our data identified immigrant
  founders from more than 60 different
  
• countries. The top 10 are listed in Chart 1.

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Global Competetion for Human Capital
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Global Competition

• Higher mobility than ever before.
• Increasing human capital needed globally,
  especially skilled and highly educated labour.
  
• Asian immigrants with a Bachelor degree or higher
  increased sharply in Canada over the last 10
  years.
  

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Canada's Asia Pacific Immigrants Education
Level, 1995-2004
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contd

• Immigration motives
• Income level
• e.g. Korea In the fourth quarter 2006, the
  average monthly income of nationwide households
  amounted to 3,168.0 thousand won per household,
  an increase of 7.7 percent from the fourth
  quarter 2005. The real income grew by 5.4 percent
  from the fourth quarter 2005. (Korea national
  stats office)
• Comparing income/capita and no. of immigrants

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Cont income level effect (Republic of Korea)
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contd

• Western Education System
• Harsh exam systems in Asian countries is a major
  push factor for studying abroad.
  
• e.g. Chinese and Korean students are cut off from
  higher education.
  
• ???,????
• Traditional Asian views regard western education
  systems as more liberal, open minded, and more
  advanced

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...cont'd

• Emergence of a satellite family structure where
  one of the parents stay behind and make money in
  Asia, while the other emigrate with children to
  take advantage of western school systems.

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contd

• Gender-inequality
• Discrimination against women could be a push
  factor for immigration.
  
• Higher chances of employment and tertiary
  education in western countries for females,
  regardless of race.

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contd

• Environmentally, western countries have more open
  space, individuals can afford more space, a
  greener environment
  
• Perceived living standards and lifestyle by
  immigrants is also one of the key factors.

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contd

• Political environment stability and future
  outlook is an important aspect
  
• After the Tiananmen Square Incident, anxiety
  about the political future of Hong Kong ensued.
  Emigration figures exploded between 1990-1997.
  
• Democratic governments and guarunteed rights.

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contd

• Economic opportunities and prospects
• Robust growth in Chinese economy attracts foreign
  workers (ex-pats) to China.
  
• As discussed in previous lectures, foreign
  Chinese contribute to the most percentage of
  foreign direct investment in China.
  
• Also attracts return immigration

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And now....

• Some Interesting Questions for you

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• Do you think the Canadian immigration rates are
  sustainable?
  
• Are immigrants putting enormous pressure on our
  healthcare system?
  
• Why, even with such a large number of highly
  educated immigrants into Canada, are we still
  experiencing a shortage in doctors and nurses?

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• And finally, if Christianity affects the economy
  of modern China, how do you think immigrants with
  Confucian beliefs would influence the Canadian
  economy?

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• Thank you!