Tuesday, June 18, 2013

OECD Stumbles Into the Immigration Debate

In a major study published last week, the OECD has concluded that the costs and contributions of immigrants in most OECD member countries sum to a net positive outcome. That is to say, that in most OECD countries the benefits of taxes, v.a.t. and other payments by immigrants into the economy amount to more than the cost of pensions, child care and other elements of social welfare that immigrants receive.

This encouraging message hides the less comforting truth that the data the study uses to reach its conclusions does not distinguish between the countries of origin of the immigrants. They are merely classified as either “native-born” or “foreign-born”. However, it so happens that the countries of immigrants' origin tend to be of basically two rather different kinds: 1) countries more or less similar to the receiving country, e.g., immigration to European countries from other European countries; 2) immigration from non-OECD (mostly third world) countries. 

It is well known that immigrants from the first group have come to find work and are usually qualified for it, hence are overwhelmingly contributors to their host country. Large numbers of immigrants from the second category are poorly qualified for the labor markets of OECD countries, even though many have come for work or economic betterment, and so represent mostly costs. 

Hence, the OECD is misleading and confusing the debate about immigration policy by treating European (or: “industrialized world”) immigrants and third world immigrants as if they were comparable units. The report occasionally refers to the lack of separate data for third world immigrants as a technical statistical problem, but I have little doubt that with the use of a little more imagination this problem could have been solved. As it is we now have a 400-page study with lots of superficially relevant statistics, but less of the incisive analysis that this problem requires.

A policy that regards country of origin as immaterial is bound to overlook the challenge of insufficient resources in the receiving countries, and of injustice to the remaining (non-emi/immigrating) third world population who stay at home. This debate is of course continually being suffocated by the stereotypical charges of racism, exclusivism, anti-islamism etc. With the OECD now so generously helping out, there seems to be no way out, only further rounds of irrelevant talk, in this “benevolent” circus of immigration debate.