Labour market performance and migration flows - European ...

European CommissionOccasional Paper 60, Volume ITable 4 Absolute excess supplySource: Venturini, 2008.2.2.2 Policy changesStill, even if the temporary migration programmes do not solve the demand for income and jobsamong potential migrants, some changes have to occur in the near future so as to improve this option,making it more beneficial and more appealing. The main weaknesses of all forms of temporarymigration programmes lie in the fact that they are not designed to grant any old-age pension to theworker. All contributions (social charges) paid by the employer and the employees are lost becausemigrants do not reach the minimum period, which in general in Europe is 15 years, namely theminimum number of years of contribution necessary to receive a pension in the host country.If the minimum vesting period is important for determining a minimum pension level necessary tolive in the host country, it reduces the incentive for those types of contracts which grant an annualincome in the country of origin for a short period in a host country. To transform temporarymigration into a long-lasting form of migration, a revision of the payment and cash of the socialcontribution paid by the migrants and the firm should be made into a personal social accountattached to the migrant that he/she can fill whilst working in different periods and maybe also indifferent countries. The portability regulation that allows migrants to receive their pension in thecountry of origin has to be integrated with special treatment for temporary workers which allows areduction of the vesting period and an obligation to cash the pension in the sending country.Furthermore, easier visa policies have to be devised in order to facilitate the mobility of temporarymigrations so that agencies are encouraged to favour this option.Special attention could be devoted to students and to trainees. Participation in the educationalsystem of the host country varies a lot. Table 5 shows how the participation of foreign studentsdiffers in the host educational system. Thus, this varies from 2% in Italy to 18% in Switzerland,with even larger variations if advanced research programmes are considered: 40% in the UK and3.4 % in Italy. As part of a future employment strategy, the presence of foreign student has also tobe enhanced because it is a prerequisite for cooperation between workers of different origins andbetter future social integration.184