The impacts of immigration on the labour market and the social state : new insights and implications for immigration policy

Abstract

"The study shows that the structure of immigration to Germany has changed fundamentally over the last decade: while in 2000 migrants predominantly had low qualifications, ten years later they predominantly had high qualifications. And here it is above all the institutions of higher education that are proving to be magnets for qualified immigration: the share of students in the number of new immigrants increased from 13.6 per cent in 2000 to 21.2 per cent in 2009. With that, reality disproves the prevalent image that many people have of migrants of being unqualified.<br>Furthermore the study shows that this increased immigration of qualified labour will have positive effects on the labour market. If 60 per cent of new immigrants have a university degree and their integration into the labour market is successful, then the unemployment quota will sink while the level of wages remains constant. The fear, widespread among the public, that a further opening of the labour markets for immigrants will lead to a drop in wages and increased unemployment can thus be proven untrue. <br>Finally the study underlines the fact that the social state profits from the immigration of persons with qualifications. Already in the past, immigrants have paid more into the social insurance systems than they have gained from it. At first that sound somewhat surprising as up to now unemployment has been higher for migrants than for persons without a migration background and migrants therefore drew more transfer benefits which were financed through taxes. However, in comparison to persons without a migration background, they pay more into the pension insurance systems which are financed by contributions. In net terms, migrants contributed roughly 2,000 euros to social insurance systems. With the rising qualifications of the new immigrants and improved integration into the labour market, these contributions will also increase." (Author's abstract, IAB-Doku)

Cite article

Brücker, H. (2013): Auswirkungen der Einwanderung auf Arbeitsmarkt und Sozialstaat. Neue Erkenntnisse und Schlussfolgerungen für die Einwanderungspolitik. Gütersloh, 38 p.