As an immigrant to Canada, the chapter on immigration in "Good Economics for Hard Times" fascinated me. Here is what I learned
The fraction of migrants in the world population in 2017 was roughly 3%. Same as 1990 or 1960. Most migrants are legal with job offers wanting to join their families. Asylum seekers granted permission in 2018 represented 1 for every 2500 EU residents.
Even after these facts, truth does not sway voters who support individuals like Le Pen or Trump. It it comes down to seductive syllogism – ppl think the world is full of poor ppl who will come here and steal jobs driving down wages. Economics tells us this doesn’t happen
1st: Wage difference has nothing to do with movement. At the height of Greece’s crisis between 2010 and 2015, less than 3% moved when unemployment was 27% in the country and they are free to move wherever.
2nd: the supply-demand curve is a wrong way to explain what happens to jobs. Immigrants spend more in the country, driving the economy and also creating jobs. A study on Cuban migrants moving to Miami found 0 change in employment rates & wages. Same with refugees in West Europe
The influx of migrants shifts the demand curve to the right which undoes the effect of the downward slope in wages due to higher labour supply. They go to restaurants, get haircuts and shop and create jobs! Also, 43% of the 500 largest US companies were co-founded by immigrants.
Unskilled immigrants don’t have impact on jobs cuz they create jobs that don’t exist/do jobs that ppl don’t want to do. Focusing on skilled immigration makes no sense. Its already hard for a family to move to a country...plus ppl dont want to leave their homeland!
3rd: Loss aversion is a key reason ppl dont move. Migration involves so much uncertainty that ppl are worried they will be worse off (more likely because of bad luck). There is no insurance against failure for migrants & no sense of community which brings me to the last point
4th. Denmark sent migrants from Bosnia, Afghanistan, Somali & Iraq to random cities in the 90s. When administrative placement was abolished, migrants chose to go where their co-ethnics were located. A sense of community is more powerful than anything
The ethic of pluralism – of celebrating cultures reduces the clash of ignorance. To make one feel at home rather than an outsider has the most powerful effect. Often, I was called an immigrant and that made me talk less about where I came from due to so many stereotypes.
With the exception of some organizations helping migrants, nothing is really done to help them adjust. Int migrants have a real challenge to get the right to work and often don't have a place to stay.
The least we can all do is to make newcomers feel at home. By calling them a Canadian or an American or a German or wherever they have now settled. This is home.
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