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Reframing Europe’s Immigration Questions Through An Urban Lens

This year’s European parliamentary elections revealed three important paradoxes in European migration dialogue. First, public discourse displayed egregious misalignment between popular perceptions of immigration and immigration realities. These unfounded perceptions of immigration’s impacts fueled the ascent of anti-immigration and xenophobic political parties and, unfortunately, underpinned national-level dialogue. The abstract nature of national dialogue stemmed from a second gap: the failure of national policymakers to engage and learn from more practical local-level discourse about migration. Had national leaders engaged local leadership in the discussion, they might have avoided the third misalignment: asking the question, “Does immigration benefit destination communities?” This inquiry is poorly framed not only because empirical evidence has largely answered it in the affirmative, but also because it assumes that the phenomenon of migration can be immediately stopped (and has not always been occurring). A more productive query, and one that local and regional leaders have already begun to ask themselves and their constituencies, is: “How can destination communities maximize the benefits of migration?” Exploring this question is the best way to arrive at practical policy tools that benefit natives and immigrants, alike.

But let us return to the first rift:

Looking Over A Four-Leaf Clover: Perceptions vs. Data Popular perceptions of immigration, which often vehemently deny immigration’s current benefits to destination societies, overlook significant data on the issue. Generalized arguments often describe migrant unemployment, benefit dependence, and the consequent drain on public coffers. In April 2014, for example, a Telegraph article reported on the public drain caused by 3,000 unemployed European immigrants receiving £100 weekly in UK Housing Benefits, costing taxpayers £10 million annually. 1The article, and similarly alarmist reports of migrants’ societal costs, failed to mention important auxiliary information to complement the presented data. These 3,000 individuals, who comprise about onetenth of one percent of the European migrants in the UK, are the exception rather than the rule. 2 Overall, European migrants to the UK—especially more recent ones—have made a positive fiscal impact, even as the UK has run fiscal deficits. 3 In fact, this trend is not unique to the UK. A 2013 OECD report confirmed that, in all but three OECD countries, immigrants had a positive fiscal impact on society, contributing a net average of 3,280 Euros annually through taxes and other fees. 4 Ross, Tim. "3,000 jobless European migrants on benefits." The Telegraph. Telegraph Media Group, 4 Dec. 2014. Web. 20 Oct. 2014. <http://www.telegraph.co.uk/news/worldnews/europe/eu/10762942/3000jobless-European-migrants-on-benefits.html>.

2 Vasileva, Katya. "Population and Social Conditions." Eurostat: Statistics in Focus 1 Jan. 2011: 1-8. Print.

3 Dustmann, Christian, and Tommaso Frattini. "The Fiscal Effects of Immigration to the UK." Centre 1

for Research and Analysis of Migration - Discussion Paper Series 1 Nov. 2013: 1-48. Print.

4 In the three countries where this was not the case—France, Germany, and Poland—immigrants’ negative fiscal impact was caused by the pensions being collected by older generations of previously employed immigrants. (Publishing, OECD. International Migration Outlook 2013. Paris: OECD Publishing, 2013.

Even if incoming immigrants were not immediately fiscally beneficial, costs associated with supporting their arrival and transition should be viewed as a prudent investment. Due to ageing, native workforces in Europe are already shrinking dramatically. By 2020, the working age population in OECD countries will lose 15% more people than it will gain annually. In Germany, this number is as high as 60%, while in Greece and Italy it approaches 40% and even Spain and Portugal exceed 20%. Poland’s 55% implies that the country which has served as a significant source of labor in Western Europe will soon cease to do so. 5 European policymakers thinking about the human resources required for future economic growth might consider immigrants’ potential to fill a growing void.

Supporting immigrants’ economic stabilization upon arrival would be a sound social and economic investment even without Europe’s current demographic shifts. Data show that immigrants are filling important labor market roles at all skill levels, but not rapidly enough. 2011 employer surveys report that about half of all small and medium enterprises experience shortages of workers with mid-level skills; 20% lack low-skilled workers, as well. In the high-skill category, although 15% of scientists and engineers in the OECD are foreign-born, shortages persist, affecting as many as 70% of the largest firms.5 Thus, assisting immigrants in adapting to their new social, cultural, and economic realities may represent an important step in strengthening the European labor market.

Perhaps the most popular argument against providing this support— financial, institutional, or otherwise—is the concern that this assistance comes at the expense of native workers and citizens. However, low- and mid-skill immigrant workers frequently obtain employment in roles not occupied by natives. This leaves high-skilled immigration; while employment of high-skilled migrants may temporarily displace native workers, even this type of immigration soon proves beneficial to the destination community. Immigrant innovation in high-skill sectors, along with high rates of entrepreneurship, ultimately leads to extensive job creation that benefits the entire economy. Immigrant-led firms, for example, are responsible for the existence of 750 thousand jobs in Germany and around half a million each in the UK, Spain, and France. 6 National-level public debates have largely ignored these data and disregarded immigrants’ cultural contributions, as well. Around Europe, immigrant communities add to the diversity of thought and experience—enclaves like the neighborhoods of Noailles in Marseille, El Raval in Barcelona, and Kreuzberg in Munich each add an important element of character and life to their respective cities. The social and economic impact of communities such as these, unacknowledged at the national level, is felt and appreciated at the local level; this is

Print.) Thus, incoming immigrants, who have been subjected to skepticism and hostility over their supposed negative economic impact, have actually been contributing to the economic prosperity of European countries all along.

5 OECD (2013). Recruiting Immigrant Workers : Germany. Paris: Organisation for Economic Cooperation and Development, 2013. Print.

6 OECD (2011). International Migration Outlook 2011 Sopemi 2011. 35th ed. Washington:

Organization for Economic Cooperation & Development, 2011. Print.

just the first reason why engaging municipal-level leaders in conversations about migration could lead to more progressive and fruitful dialogue.

Learning from the Local: Why Municipal Perspectives Matter While national discussion continues to debate whether or not immigrants benefit society, local leaders must innovate policy responses to other concerns. In light of continued economic shifts away from manufacturing and towards service industries, city leaders in Europe’s small cities must identify how to encourage a renewed clustering of innovation and small and medium firm growth. In middle tier cities, leaders must contend with municipal shrinkage caused by ageing and the departure of mega-firms to Europe’s largest metropolises. In large urban areas, authorities must ensure that increasingly diverse communities contribute to a harmonious and inclusive atmosphere. For cities at all levels, a national dialogue that consistently returns to consider the benefits of migration is largely impractical, if not entirely unhelpful. Urban areas are the destination point for most international immigration, and cities’ leaders must turn their thoughts towards how to leverage that fact for the benefit of their communities.

Smaller cities, eager to bolster the proliferation of small and medium enterprises, might consider the role that migrants could have in economic diversification and revitalization. Entrepreneurship rates of migrants approximate those of natives in many European countries7 despite migrants’ lack of contextual market information, economic support networks, or—often—linguistic or tacit cultural communication skills. On the contrary, an analysis of firm births and closures in Germany revealed that new, migrant-led firms frequently outlasted firms started by natives. 8 One potential reason for this discrepancy is migrants’ enhanced ability to overcome “barriers to internationalization,” through their language skills and understanding of foreign markets and overseas expansion opportunities. 9 While support to entrepreneurial immigration would by no means serve as a complete response to economic shifts happening in Europe’s smaller cities, it makes sense for these localities to consider it among a menu of policy tools to support renewed growth.

Inviting immigration could also be a municipal tool to battle local-level population shrinkage, which adversely affects many European cities. 40% of Europe’s large cities have experienced population decreases over the past several decades, due to suburban population shifts and ageing, among other factors. 10 Large-scale population declines lead to a decrease in housing values, abandonment 7 European Web Site on Integration: Integration Dossier N. 2: Immigrant Self-Employment and

Entrepreneurship, 2011.

8 OECD (2010), “Entrepreneurship and Migrants”, Report by the OECD Working Party on SMEs and

Entrepreneurship, OECD. 9 OECD (2009), “Top Barriers and Drivers to SME Internationalisation”, Report by the OECD Working Party on SMEs and Entrepreneurship, OECD. 10 Dieter Rink, Annegret Haase, Matthias Bernt and Katrin Großmann (2010): Addressing Urban

Shrinkage Across Europe – Challenges and Prospects. Shrink Smart Research Brief No. 1, November 2010. On behalf of the Shrink Smart consortium. Helmholtz Centre for Environmental Research – UFZ, Leipzig

and decay of valuable infrastructure, and a tighter labor pool that is unattractive to prospective employers. Furthermore, city shrinkage “operates synergistically to put strains on the overall economy,” 11 implying more serious repercussions for national economies, as well. Immigrants can help replenish labor pools, put valuable infrastructure to use, and give some modicum of balance to tilting dependency ratios that threaten municipal finances. However, incorporating immigrants into the labor market, and society at large, requires thoughtful planning and goal-oriented dialogue, as demonstrated by large European cities with existing immigrant populations.

Facilitating the integration of migrants into local labor markets, social networks, and neighborhoods must soon be a goal not only for larger cities, but cities around Europe seeking to maximize the benefits of immigration. Several European-wide initiatives and programs exist to assist in these efforts. The Diversity in the Economy and Local Integration (DELI) seeks to encourage enhanced dialogue around how to foster the growth of migrant enterprises, while Eurocities works to advance the agenda of migrant inclusion at the European-level. Increasingly, however, cities hoping to maximize the benefits of immigration will need to craft strategies to cultivate an inclusive environment that facilitates urban migrant integration.

Work, Live, Build: Defining Integration Maximizing the benefits of international labor mobility—for neighborhoods, municipal regions, nations, and Europe in general—requires an understanding of the barriers to immigrant success. Restrictions on access to labor markets, community participation, and housing prevent the integration that could lead to economic prosperity, social cohesion, and neighborhood revitalization in Europe’s cities. Thus municipal plans should aim to identify how these barriers manifest themselves in urban areas and consult with immigrant workers and businessowners, related NGOs, community groups, and urban planners on how to dismantle them.

Barriers to labor market integration can take the form of skill invisibility, inherent biases, or communication barriers. Skill invisibility can occur when local employment institutions (or employers, themselves) do not have the information or resources necessary to detect the value of vocational skills or degrees acquired in a foreign context. This devaluation of immigrants’ experience or education can prevent full exploitation of their abilities in the labor market. Similarly, unrecognized biases inherent in employers’ perceptions of migrants may lead to under-utilization of migrants’ skills. Studies suggest that dismissal of exemplary employment applications may occur due solely to the foreign nature of applicants’ names, for example. 12 Tackling these sorts of biases requires time and a concerted 11 Olsen, Aksel K. “Shrinking Cities: Fuzzy Concept or Useful Framework?” Berkeley Planning

Journal, 26(1). 2013.

12 Oreopoulos, Philip, and Dechief, Diane. Why do some employers prefer to interview Matthew, but

not Samir? New Evidence from Toronto, Montreal, and Vancouver. Centre of Excellence for Research on Immigraiton and Diversity. 2011.

public effort, but can lead to a more equitable labor market and productive workforce.

Productive workforces must benefit from adequate public services, such as healthcare and transportation, to which many immigrant communities lack access.

Ensuring community integration requires not only a greater analysis of barriers to service access, but also intermediation between service providers—such as police forces, medical workers, educators, and city planners—and immigrant communities.

Increased consultation might reveal the need for collaborative policing programs to build community trust, or nuanced zoning regulations to facilitate immigrant entrepreneurship in residential neighborhoods.

Labor market integration and social cohesion can lay the groundwork for migrant integration, as long as neighborhoods exist that are welcoming to recent arrivals. Whether they are affordable housing blocks that serve as landing pads for new residents, or ethnic enclaves that serve as an important cultural link between migrants and natives, institutions must support immigrants’ ability to root themselves in a city and invest—financially, socially, or otherwise—in a new home.

Considerations about spatial design, linkages to other neighborhoods, and functional rather than utopian planning can all contribute to migrant integration into the housing market.

Perhaps the most important externality of efforts to create cohesive locallevel migrant integration plans is their potential to generate a change in public perception. The work of local policymakers, service providers, and community members to maximize the benefits of migration can help shift the dialogue at the municipal, regional, and perhaps national levels, from abstract and sensationalist to goal-oriented and productive.

Forming overarching and effective integration strategies is no easy feat; it requires local leaders to devote time, energy, and funds to piloting policies, measuring results, and disseminating information about impact. Recently, the World Bank’s International Labor Mobility Program, based out of the Center for Mediterranean Integration, has teamed up with the Ryerson Maytree Global Diversity Exchange, the Bertlesmann Foundation, Cities Alliance, the Open Society Foundations, and the German Marshall Fund to think together with local policymakers and practitioners about how to advocate for continued policy innovation. This community of practice, the Labor Integration Network for Cities and Urban Planners (LINC-UP), hopes to engage municipalities in a process of consultation and policy formation. Ideally, these efforts will not only maximize the benefits of international migration for migrants and their destination communities, but also catalyze more productive local and national dialogues about migration policy.