Highly skilled migration Lucie Macková Who are highly skilled migrants? −Other terms like expats, intra-company transferees… −‘Global race for talent’ −No universal definition but often those with tertiary education −Different types of visa categories −Some countries define skilled migrants by: −Salary −Talent/merit −Points (Siegel, 2022) − Highly skilled migration −The issue of brain drain (Bhagwati, 1976), brain gain (Lucas, 2005) and talent circulation (Saxenian, 2006) −Moving away from education (Kuvik, 2012) and description according to occupation −The CZ-ISCO classification (2019) includes 3 categories of employment at a highly qualified level: −senior management −researchers −technical, health and teaching staff − Definitions −Highly-qualified or highly-educated migrants −Not a universal definition −the level of education, rather than the salary scale is the appropriate measure (Smith and Favell 2006; Triandafyllidou and Gropas 2014) −Students are a special category, considered highly-skilled in some cases, yet not in others (She and Wotherspoon 2013; Raghuram 2013) −“expatriates,” “lifestyle migrants” (Benson and O’Reilly 2009), “cosmopolitans” (Brimm 2010), “Eurostars” (Favell 2011), “elite migrants” (Beaverstock 2005) or “knowledge migrants” (e.g. Ackers 2005) Highly skilled migration −Highly skilled workers generally welcomed by destination countries −Still face deficits in terms of rights and hurdles in their transition to a long-term status (Triandafyllidou, 2022) −Less attention to the local experiences of skilled migrants (Van Riemsdijk, 2014) −Research on skilled women in STEM professions in Germany (Grigoleit-Richter, 2017) −though privileged compared with other immigrant women, face barriers in the highly gender-segregated German technology industry −Migration and settling-in processes of highly skilled professionals and their families in Germany and the UK (Föbker and Imani, 2017) −the role of language, the establishment of new social networks and labour market participation − − − − OECD talent attractiveness Obsah obrázku text, snímek obrazovky, Písmo, číslo Popis byl vytvořen automaticky Zdroj: Tuccio, M. (2019), "Measuring and assessing talent attractiveness in OECD countries", OECD Social, Employment and Migration Working Papers, No. 229, OECD Publishing, Paris, https://doi.org/10.1787/b4e677ca-en. Quality of opportunities: Unemployment rate of the foreign-born with education ISCED 7-8; Over-qualification rate of the foreign-born with education ISCED 7-8; Share of the ISCED 7-8 educated foreign-born with temporary contracts; Share of foreign-born part-time workers with education ISCED 7-8. OECD Talent Attractiveness: How does your country compare in each dimension? Quality of opportunities, income and tax, future prospects, family environment, skills environment, inclusiveness, quality of life Zdroj: Tuccio, M. (2019), "Measuring and assessing talent attractiveness in OECD countries", OECD Social, Employment and Migration Working Papers, No. 229, OECD Publishing, Paris, https://doi.org/10.1787/b4e677ca-en. Skills environment: Internet access; English proficiency; Gross domestic spending on R&D; Patents. −“Migration can be a powerful force for prosperity and development. When it is managed properly, it provides benefits for all people — in origin and destination societies.” −(World Development Report, World Bank, 2023) Impact of skilled migration in the countries of destination −Innovation = new idea, device or method −It can be a catalyst for growth and development −Steady increase of highly educated persons among total migration flows −Circulation of scientists, researchers etc. −Migration can help domestic innovative companies in overcoming labour shortages, diffusion of knowledge (or experience) −Higher rate of patents among migrants in the US Mette Foged and Giovanni Peri (2013) Study on Immigration to Denmark − −Less skilled domestic workers moved into more complex occupations thanks to immigration −Immigration raised the wages of the low-skilled domestic population −No higher probability of unemployment was found for low-skilled Danes Christian Dustmann and Tommaso Frattini (2014) The Fiscal Effects of Immigration to the UK − −2000-2011: immigrants from EU countries contributed more than £20 billion to the UK budget −Their human capital (education) was calculated at £6.8 billion. −Those who arrived since 2000 were 43% less likely than Brits to be on welfare −Migrants from EU-15 countries: handed over 64% more than they received in benefits −Migrants from new member countries: contributed 12% more OECD study (2014) −The impact of migrants who have arrived in OECD countries over the last 50 years is almost zero −Only rarely it exceeded the threshold of 0.5% of GDP (positively or negatively) −Luxembourg and Switzerland - 2% positive contribution −In most countries (except those with a higher proportion of older migrants), migrants contribute more in taxes than they receive in benefits Mayda et al. (2022) The fiscal impact of immigration in the United States: Evidence at the local level − −An increase in the population share of immigrants of a U.S. county does not significantly affect, on average, local public revenues and expenditures −Heterogeneity in terms of the impact of immigrants with different skill levels −Inflows of high-skilled immigrants improve the fiscal health of local governments - by increasing county-level revenues and expenditures - while the arrival of low-skilled immigrants has the opposite impact −Transfers to the county from the federal government (only) partially offset the local fiscal impact of immigration Patricia Cortés (2023) Immigration, household production, and native women's labor market outcomes −- There are more than 12 million foreign domestic workers in the world −- They represent 7.7% of all migrant workers and 17.2% of all female migrant workers −- 70% Filipino migrant women migrate as domestic workers, 88% in Indonesia and 80% in Sri Lanka −- Low-skilled immigrants provide services that are close substitutes for household production and enable high-skilled native women to participate more actively in the labour market −- Migrant domestic workers have large positive effects on the labour supply of highly educated women’s labor supply and on the gender pay gap for high-powered occupations Highly skilled migrants and integration −Literature on specific patterns of integration among highly-skilled migrants (Nohl et al. 2014; Duchêne-Lacroix and Koukoutsaki-Monnier 2016; Ryan and Mulholland 2014; Raghuram 2013; Piekut 2013; Fechter and Walsh 2010; Fechter 2007) −Migration vs. mobility −Skills often not recognised (spouses, refugees) −Integration support in the host countries focuses on low-skilled immigration and the highly-skilled are often left to their own devices to create a life on their own (Buzdugan and Halli 2009; She and Wotherspoon 2013) − Integration paradox −Various studies point to the fact that immigrants who have a better access to mainstream society report more discrimination −Especially if they possess characteristics that distinguish them from the mainstream society and live in countries with a more open socio-political context of reception − −higher education, −length of residence, −language skills, −news media consumption, −increased social exposure to mainstream members (Schaeffer and Kas, 2023) − Low skilled migration −People working in jobs that do not require formal qualification −People without qualifications −People working in low-wage positions − −Semi-skilled workers (waiters, taxi drivers) − −Issue of the recognition of qualifications −Employment-skills mismatch − Unskilled migration? Obsah obrázku stůl Popis byl vytvořen automaticky Patrick McGovern (2020). Who are you calling unskilled? https://blogs.lse.ac.uk/brexit/2020/03/06/long-read-who-are-you-calling-unskilled/ Deskilling (brain waste) −Work does not match the worker's qualifications −Complexity of recognition of qualifications – formal education and previous work experience −Also: underemployment (Jong and Madamba, 2001), downward occupational mobility (Bauer and Zimmermann, 1999), degrading of skills (Grandea, 2008), over-qualification (Chen et al., 2010), over-education (Chiswick and Miller, 2009), job mismatch (Pecoraro, 2011) and skill erosion (Galgóczi et al., 2009) −Valenta and Drbohlav (2018) describe the mismatch between the qualifications that skilled migrants have and the jobs they hold on the labour market in the Czech Republic − Impact of skilled migration in the countries of origin −Remittances as a source of income to invest in technologies −Social remittances = the transfer of knowledge, values and norms can lead to changing institutions −Return migration – facilitating knowledge transfer and international cooperation −Transnational networks and specific policies on diaspora engagement −BUT it can also hinder the ability to innovate (brain drain) Brain drain −Brain drain (or human capital flight) is a phrase denoting the one-way migration of highly educated and qualified people −In contrast to outflow, brain gain has mainly positive effects, both for the country in question and for the person in question −Brain circulation – temporary migration, migrants return after some time with new knowledge or skills −Triple-win situation − Skilled migration according to income level Obsah obrázku stůl Popis byl vytvořen automaticky − Reverse brain drain −A form of brain drain where human capital leaves a more developed country for a less developed country −Skilled workforce can further their education, gain work experience and then return to capitalize on that experience −Some countries have active policies that support this form of (return) migration, e.g. China − −“Sea turtles,” or haigui in Chinese, is slang for people who are born in mainland China, spend a few years abroad studying or working, and return home as high-skilled talent. (Sun, 2013) − China and brain drain Morocco and USA - examples USA −“Give us your best, your brightest, your most energetic and talented” instead of “give us your poor, huddled masses” (Moore 1993) −Silicon Valley: 30% of new companies between 1995-98 were founded by Indian and Chinese immigrants −US National Research Council (1988): „a large fraction of the technological output of the United States is dependent upon foreign talent and such dependency is growing“ −1 out of 3 engineers in the USA is an immigrant −The US competetiveness also thanks to the ability to attract and retain talented workers from foreign countries −More Russian Nobel prize winners live in the USA than in Russia Immigrant enterpreneurship −A small corner shop or transnational company… −In Los Angeles: Koreans are 3x more likely to be entrepreneurs than other population −Miami: businesses owned by the Cubans −1967: 919 −1976: 8 000 −1990: 28 000 −An average business employing 2-4 workers −The effect can be positive as well as negative (long work hours, neglecting the legislation…) − USA – selected companies founded by foreigners −Company Founder Country of Origin Employees − −Intel Andy Grove Hungary 86,300 − Sun Bechtolsheim/Khosla Germany/India 34,900 − Yahoo Jerry Yang Taiwan 13,600 − Google Sergey Brin Russia 20,222 − eBay Pierre Omidyar France 16,200 − USA visa types −H1-B visa −To work in a specialty field −Post-secondary education of at least 4 year −H1-B1 (for Chilean and Singaporean nationals) −0-1 visa for individuals with extraordinary ability and achievements in different fields (‘Einstein visa’) −L – intra-company transferees (managerial or executive capacity or specialized knowledge) − Canada and Australia −Expression of Interest (EoI) system, point-based system −To address labour shortages, especially in healthcare, manufacturing, engineering, and trade −In September 2022, Australia adjusted its planning levels upwards by 30 per cent, leading to a total of 142,400 visas for skilled labour in the upcoming year. −In November 2022, Canada announced new plans to expand its highly skilled workforce by making over 300,000 visas available to highly skilled migrants through its federal Express Entry Programme between 2023 and 2025. −Source: ICMPD, 2023 The Blue Card Directive −Annual gross salary at least 1.5 times average national salary −Contract for at least one year −In 2021, first residence permits issued for employment-related reasons hit a record high of 1.3 million, with only 24,500 Blue Cards issued across the EU for highly skilled workers. −The reforms introduce simplified procedures, lower requirements, and more favourable conditions, including better use of intra-EU mobility benefits Obsah obrázku text, snímek obrazovky, řada/pruh, Písmo Popis byl vytvořen automaticky Blue Card −Germany issued 63 200 EU Blue Cards in 2022 −77 % of all EU Blue Cards issued (Eurostat, 2023) − −In 2022, the majority of EU Blue Cards issued in the EU were issued in four countries: −Germany (63 242, 77.3 % of the total), −Poland (4 831, 6.0 %), −Lithuania (3 924 or 4.8 %), −France (3 876, 4.7 %) Obsah obrázku text, snímek obrazovky, Písmo, řada/pruh Popis byl vytvořen automaticky EU talent partnerships Obsah obrázku text, snímek obrazovky, Webové stránky, Webová stránka Popis byl vytvořen automaticky Czech Republic −Czech Republic as a country of immigration −More than 800 thousand employed foreigners in 2021 −Approximately 124 thousand immigrants worked in jobs requiring a high level of skills as of 2020, and the numbers of highly skilled migrants have tripled over the past decade (CZSO, 2021) −Quality of opportunities for highly skilled workers (OECD, 2023) − Obsah obrázku kreslené, klipart, ilustrace Popis byl vytvořen automaticky Obsah obrázku text, snímek obrazovky, diagram, Písmo Popis byl vytvořen automaticky Return migration − “the movement of a person returning to his or her country of origin or habitual residence usually after spending at least one year in another country” (IOM, 2011) − Voluntary vs. Forced return − Criticism that the link between return migration and development is often taken for granted and not critically interrogated (van Houte and Davids 2008) − The impact of return migration depends on the magnitude of the flows and selection of participants (Radu and Straubhaar 2012) − − Cassarino (2004) − What can be the benefits of return migration? −Remittances (investment and social remittances/innovations) −Occupational choices or returnee entrepreneurship (Wahba and Zenou 2012; Dustmann and Kirchkamp 2002). −Brain-circulation (Docquier and Rapoport 2011; Saxenian 2006) or increase in the human capital/productive skills (Adams 2006; Adams and Page 2005; De Coulon and Piracha 2005) −Dependent on skill level? (Klagge and Klein-Hitpaß 2010) −In the Netherlands, highly skilled migrants are in a better position to contribute to the development in their countries of origin, by the way of economic and social remittances (Sturge, Bilgili, and Siegel 2016) − Returnee entrepreneurship − Work experience abroad is the most significant predictor of entrepreneurial activity among return migrants. − − Other factors included savings, reasons for return as well as frequency of home visits (Black and Castaldo, 2009). − − Qin and Estrin (2015) found that peer influence shapes the likelihood of returnee entrepreneurship. − − − − − − TOKTEN Programme − Transfer of knowledge through expatriate nationals − Created in 1977 by UNDP − Operated in 50 countries and recruited 5 000 experts − Connects migrant professionals to specific programmes in their countries of origin −Advantage: knowledge about the local circumstances − Some volunteers end up returning to home country permanently − − − − − Returnee entrepreneurship −