Managing Migration in Ireland - European Commission - Europa

executive summary xiiihave found that on average migrants tend to pay more in taxes than they receivein benefits over their lifetime. Generally speaking countries with high levels ofimmigration in Europe and North America (e.g., Germany, Switzerland and theUnited States) have been very successful economically. The most importanteconomic impact of immigration is generally distributional. Those who may loseeconomically by the entry of international migrants are the workers with whomthe new migrants compete for employment. Much of the effect depends on theextent to which immigrants are complements or substitutes for local workers. In agrowing economy with low unemployment, there may be few negative effectsbecause a rising economy may be strong enough to raise all incomes.Most of the international research on the effects of migration has focused on theeconomic impact of migration, while the social and cultural benefits of migrationtend to be overlooked. Migration can have a profound effect on a host society andcan alter a country’s sense of identity. Migrants undoubtedly make significantpositive contributions to social and cultural life in the arts, literature, sports andscience, but these benefits are more difficult to quantify. Migrants are alsobecoming an increasingly important source of labour for the social and healthcaresectors in many countries. At the same time, failure to integrate migrants intosociety and allow them access to public services can lead to their being socially andeconomically excluded.Benefits of MigrationGiven the recent rapid growth in immigration to Ireland, especially non-Irishimmigration, there are fewer studies than in some other countries regarding theeconomic and social effects of migration. Nonetheless current research and datasources in Ireland suggest a number of effects which are broadly summarized below.As the bulk of immigration to Ireland over the 1990s involved skilled labour, withmore than half being returning Irish emigrants, migration played a key role inexpanding the productive economy, allowing rapid growth and helping to reducelong-term unemployment. These immigrants contributed to the easing ofsignificant skills shortages. Research by the Economic and Social Research Institute(ESRI) demonstrates that Ireland has benefited from the fact that the labour marketprofile of immigrants has shown them to be a young and highly educated group.Ireland’s booming economy also attracted many former emigrants to return home,bringing back with them the experiences, skills and knowledge accumulated whileoverseas. Many found themselves earning wages on return that were higher thansimilarly educated natives who had not migrated. In addition, this return flow ofmigrants had a number of positive effects on the economy. For instance, someresearch shows that as migrants (including returnees) were relatively more skilledthan the native population, this inflow (because of its skilled nature) actuallycontributed to a reduction in earnings inequality.Overall, it is generally agreed that immigration to Ireland in recent years hasincreased economic growth, eased labour market shortages, improved output andreduced earnings inequalities. While economic studies show that immigrationtends to contribute positively to Irish gross national product (GNP), these analysesare less definitive on its impact on GNP per capita, which is broadly used as a