Labour migration in Europe winners and losers

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Labour migration in Europe winners and losers

• 20 May 2005
• Georges Lemaitre
• International Migration, OECD

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What is at stake with respect to labour migration

• Higher versus lesser skilled migration
• Every country wants high-skilled migration
• General denial that there is a need for lesser
  skilled migration
• Irregular migration is concentrated among lesser
  skilled
• Temporary versus permanent migration
• Temporary is less controversial, easier to avoid
  downside effects
• Less investment by destination country in
  integration
• But not all needs are temporary
• Permanent migration can bring longer term benefits

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The objectives, therefore, are to

• Satisfy labour needs
• Redirect irregular migration into legal channels
• Avoid adverse consequences
• For destination country
• Inadequate integration of new arrivals and their
  children
• Xenophobia
• For origin country
• Brain drain
• Maximise the benefits for all

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Labour migration regimes in Europe

• Regulated migration
• Employer-driven
• Supply-driven
• Free circulation migration
• Unauthorised migration
• Legal work
• Illegal work

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Recent labour migration in Europe prior to EU
enlargement

• In Southern Europe extensive labour migration
  for lesser skilled jobs, often unauthorised
• Elsewhere
• Limited high-skilled migration except in UK,
  Ireland, Switzerland
• Some legal temporary lower skilled migration, but
  generally in limited numbers
• Some unauthorised migration of unknown magnitude
• Some spillover of labour migration into other
  categories (asylum, family)

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Recent labour migration in Europe after EU
enlargement

• Massive increase in movements to Ireland and the
  United Kingdom, mostly for low-skilled jobs,
  often temporary, by citizens of new member states
• Continued high level of movements in southern
  Europe , mostly from outside EU/EEA, except for
  Romania and Bulgaria
• However, there are EU/EEA entries in all EU
  countries, despite transition restrictions
• Preferential treatment for new member citizens
• Subject to numerical limits or an employment
  test
• Some regularisations (?)

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Inflows of workers from accession countries
(thousands)
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• Who has gained and who has lost from recent
  migration in Europe?

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Costs and benefits of migration for the emigrant
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Immediate benefits of labour migration for
destination country

• Some criteria
• Increase in size of economy - trivial
• Increase in national income per resident - not
  clear
• Employers get the workers they need
• To maintain their business / to expand their
  activity
• Little drain on public resources, no outlays for
  education
• But pressure on housing, social services, impact
  on wages (?)
• Bottom line Is the life of the average resident
  better as a result of the increased migration?

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Longer term considerations (for the destination
country)

• Continued employability of immigrant in the event
  of job loss requires
• Language proficiency
• Minimum level of education
• Labour migration is accompanied / followed by
  family migration
• Integration prospects for children of immigrants
• Minimum level of education of parents
• Development of contacts in host country
• Otherwise, significant investment in schooling
  support

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Benefits of labour migration for origin country

• Employment for excess labour supply
• Higher wages for immigrant and income transfers
  back to home country
• Transfers of skills and technology
• But potentially
• Loss of public investment in education and health
  of emigrant
• Drain of workers needed in origin country
• Loss of educated workers, risk-takers
• A useful counter-example gt Ireland.

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The balance sheet

• If one looks at countries where there has been
  significant labour migration in recent years, it
  is hard to escape the conclusion that this has
  been highly beneficial for the destination
  country.
• One substantial benefit is that it helps to
  provide to the host country population a more
  balanced view of migration.
• Ensuring longer term benefits means putting in
  place the right policies and investing in the
  future.