1. Immigration, Development and Policy Trade-Offs Jeff Dayton-Johnson and Theodora Xenogiani OECD Development Centre 4th Annual AFD/EUDN Conference8 November 2006, Paris

2. 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?

3. 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?

4. 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

5. 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…

6. 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

7. Interaction of Policies Policy Instrument I (Migration Policies) Policy Objective X Policy Instrument 2 : (Social Policies) Policy Instrument 3 : (Development Assistance)

8. Interaction of Policies Objective I: Labour Market Equilibrium Policy Instrument X Objective II: Social Cohesion Objective III: International Poverty Reduction

9. Instruments and objectives: coherence and complementarities

10. Instruments and objectives: coherence and complementarities

11. 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?

12. 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?

13. 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

14. 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

15. 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?

16. 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?

17. 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

18. 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?

19. 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?

20. 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?

21. 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”?

22. 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?

23. 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?

24. 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

25. What do diaspora networks offer? • Information sharing: job opportunities, accessing social services • Asymmetric information: social assistance, credit, insurance • Means of contract enforcement

26. What are the limits of diaspora networks? • Networks or family contacts? • Bridging or bonding social capital? • How to “engage” informal networks?

27. 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”

28. 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

29. Contact: Jeff Dayton-Johnson jeff.dayton-johnson@oecd.org Theodora Xenogiani theodora.xenogiani@oecd.org OECD Development Centrewww.oecd.org/dev

30. Merci de votre attention ! Thank you for your attention!