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Immigration policies and their impact on the economy and population

August 6, 2021

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Immigration population in the US — Image source - https://bit.ly/2QBxEha

This article is written by Manasvee Malviya, from the University of Petroleum and Energy Studies, Dehradun. In this article, the author had made an exhaustive analysis of immigration policies in the United States as well as the impact of policies on the economy and population.

Table of Contents

Introduction

As globalization took place around the world, people started migrating for better economic stability along with other benefits. Immigration has become an essential topic around the world. With the hope of improving quality of life and starting a career, people tend to move across the world. Transportation has played a vital role when it comes to immigration. Developing countries around the world host a maximum number of international migrants. Migrants impact the economy of both developing countries (host) and home countries.

Before understanding what are immigration policies, we need to understand immigration, migration, and emigration:

Migration refers to the movement of a larger group from one region to another region, within the country, or in another country. For example, in India, Kashmiri Pandits were forced to move out from the Kashmir region, hence, they migrated.
Immigration refers to the movement of individuals or their families from their home country to another country to live permanently in that country. For example, a family from India immigrated to Canada. Further, the term migration is used for individuals, birds, and animals whereas immigration only refers to an individual.
Emigration refers to leaving the resident country or the origin country with the intention of moving to another country. For example, Indians emigrate to the United States.

As the countries started to develop, the need for manpower increased which resulted in job creation. With effective transportation systems prevalent around the world, people began to move to another country in search of better opportunities. Gradually, the number of people immigrating to developing countries like the United States, Germany, and Canada increased. Therefore, for regulating and freedom of movement of the immigrant’s immigration policy was constituted.

Immigration policy

Immigration policy can be defined as the policy through which the states control the entry of individuals, whereby the individuals wants the right to access the countries territory; want to establish residence in the counties border; work permits- to participate in the labour market; to bring a family member along with them and the rules related to acquiring citizenship by the individual and family member.

Perspectives of an immigration policy

Immigration policy plays a significant role when it comes to economic welfare and development around the world. The immigration policies vary from country to country. All industrialized countries face certain challenges related to economic and welfare growth and sustainability. For instance, an increase in the ageing population, a decline in the birth rate, etc. There are three perspectives of immigration policy. These perspectives provide logic and help to understand immigration policy:

Economic utilitarian perspective

This perspective of immigration policy affirms the policy should be directed towards the economic growth of the country. From the economic perspective, the policy’s primary concern and objective should be upon economic growth and concern about anything else is secondary. The economic utilitarian perspective appears in two modes:

First, it explicitly focuses upon profit maximization by implementing such policies that are lenient for the immigrants and providing employers with a flexible and large labour force.
Second, this model focuses on the potential costs of immigration and drives the policy towards accumulating workers that are needed by the employers, thus, minimizing the expenses on unemployed workers. In both scenarios, the objective is the same, therefore, immigration serves the needs of employers and the economy and benefits the whole society.

Rights liberalism perspective

This perspective focuses upon the rights of an individual, both immigrants and the citizens of the country. The rights liberalism perspective also appears in two modes:

First, this perspective prioritizes the rights of immigrants and focuses upon the importance of dignity and access to welfare and family life. Here, the rights in question are considered human rights. Further, in this mode of rights liberalism, the policy is directed to facilitate free movements of the immigrants and family reunification. This is regardless of whether the economy is benefited or not.
Second, this mode prioritizes the rights of citizens in the host country. This mode can be found in the industrialized countries on the matter related to unskilled immigration. Opportunities for the citizens are considered and the policy ensures that citizens are not impacted by the immigrant flow in the country, in terms of job opportunities and wages.

Traditional community perspective

This perspective emphasizes the collective good, it includes protection of existing culture, social order and relations, and rule of law that is likely to be caused by immigration. This perspective directs the policies towards restriction or omitting policies that encourage the cultural accumulation of immigrants. When this perspective is applied it might appear racist but the policy driven by the traditional community perspective can be considered positively as it simply focuses on preventing what exists rather than excluding it. For example, Israel’s policy prefers immigrants who are Jewish.

International Migration Law

The International Organisation of Migration (IOM) is an intergovernmental organization established in 1951. Total 174 states are members of IOM. The International Organization was established with the objective to regulate migration, promote international cooperation in migration issues, and assistance to the migrants in need. In 2004, the International Organization of Migration established an International Migration Law Unit to regulate, strengthen and promote IOM’s involvement in International Migration law. The purpose of this unit is to understand international legal standards that govern migration and the rights of the migrants.

At the international level, there is no comprehensive legal instrument that governs the migration law or rights of the migrants. However, the laws can be seen in the rules and regulations of state sovereignty as well as in the human rights of the person involved in migration.

Immigration policy – the United States

Types of migrants

Immigration policies vary from country to country, thus, the names and categories are given to people moving from one to another country to live. In the U.S., there are three types of migrants which are as follows:

Immigrants

Immigrants are the people who move from one country to another country, to work and live. According to the Pew Research Centre, estimates based on census data adjusted for undercounting, there are 45 million immigrants out of which 77% of the immigrants are legally in the country. They are the individuals who generally move to explore new job opportunities. Immigrants enter the U.S border legally and acquire citizenship as per the immigration policies. They are given all the rights as other citizens.

Refugees

Refugees are individuals who have left their home country and can’t return to their home country due to the fear of prosecution. The prosecution is based on their nationality, religion, race, opinion, or political membership. The U.S Citizenship and Immigration Service has the authority to determine whether the person has suffered prosecution in the past or has a well-founded fear of being prosecuted in the future.

Asylees

Asylees or asylum seekers are the refugees who are already in the territory of the U.S. or at the port of entry or they meet the conditions required to be considered a refugee. If there is considerable fear of prosecution in the home country, then they can apply for asylum. It prevents the deportation of the individual, allows the refugees to stay in the U.S., receives a permit to work and they can apply for social security cards. Further, they can apply for refugee medical assistance and can file a petition to bring family members who have fear of prosecution in the home country to the United States.

History

Immigration policy in the US is a highly controversial issue. The present immigration policy reflects the economic needs and growth of the country. The origin of the concept of immigration policies in the US can be traced back to the 1800s. During the Civil War, many states passed their immigration law, so, the Supreme Court, in 1875, asserted that it is the responsibility of the federal government to constitute immigration laws. Industrialization and globalization were at their peak, according to the need the government passed immigration laws. The history of the development of immigration policy can be divided into three phases:

1880-1900

The Chinese Exclusion Act, 1882 was passed that bars the entry of Chinese immigrants.
The Immigration Act, 1891 mentioned who can enter and who are not welcomed. Also, this Act created the federal office of immigration.
The United States set up and opened its first immigration station, New York Harbor, in 1892.

1900-2000

The Immigration Act, 1917 establishes the criteria to be fulfilled by the immigrants to enter the United States.
The Immigration Act, 1924 introduced the quota system and confined the number of immigrants allowed to enter the U.S. yearly.
In 1924, due to the restriction on the number of immigrants, illegal immigration increased, the U.S. Border Patrol was established.
During World War II, there was a labour shortage in the U.S. that resulted in an agreement between the U.S and Mexico. The agreement formed the Bracero Program in 1942, which allowed the Mexican agricultural worker to enter temporarily into the U.S.
In 1948, the first refugee and resettlement law was passed- the Displaced Persons Act, to deal with the Europeans who were seeking permanent residence after World War II in the United States.
In 1952, the exclusion of Asian migrants was ended by the McCarren-Walter Act.
In 1965, the quota system was lifted by the Immigration and Nationality Act.
In 1986, the Simpson-Mazzoli Act was signed by President Ronald Reagan. The act granted amnesty to illegal immigrants in the United States.

To read more about the quota system click here.

2000-2018

In 2001, a bill of DREAM Act (Development, Relief, and Education of Alien Minors) was proposed which provided the legal status to the undocumented immigrants brought illegally by their parents. The bill was never passed.
President Barack Obama, in 2012, signed Deferred Action for Childhood Arrival. This provided temporary protection from deportation.
President Donald Trump, in 2017, signed two orders, both titled ‘Protecting the Nation from Foreign Terrorist Entry into the United States. These orders were passed to curtail travelling and immigration into the U.S. from 6 Muslim countries (Iran, Chad, Libya, Syria, Somalia, and Yemen) as well as North Korea and Venezuela. The order issued was challenged in both the state and federal courts.
Travel restrictions were lifted from Chad in April 2018.

The evolution of U.S. immigration policy reflects the economic needs of the country. The policies change with the needs of the economy and other factors.

Biden’s proposed changes

Biden’s administration is working towards reversing the restrictions imposed by President Donald Trump on immigration. The proposition of the changes in the immigration policy was sent on day one of the president’s ships. The Bill, the U.S Citizenship Act, 2021, proposed by Biden’s administration, was introduced with the objective to establish a new system to responsibly manage and secure the United States border, to keep families and communities safe and better management of migration across the nation.

The Bill prioritizes and modernizes the immigration legislation in the U.S., stimulates economic growth along with the needs of every worker and provides a pathway for immigrants and their families to get citizenship. The Bill provides for the following:

Providing pathways to citizenship and strengthening labour protection

Citizenship for undocumented individuals

The Bill provides for the individuals living in the country to apply for temporary legal status, on the completion of 5 years they can apply for a green card, after passing criminal and national security background checks and paying taxes. Further, dreamers and immigrant farmworkers can apply for a green card after the legislation is passed, if they are eligible. After the completion of 3 years, the green card holder can apply for citizenship, if they pass an additional background check and exhibit knowledge of English and U.S. civics. Applicants must be present physically in the territory of the U.S. on or before January 1, 2021.

Family-based immigration system

The Bill eliminates the provision related to keeping families apart and temporarily allows the immigrants to join the family in the United States with approved family sponsorship petition while waiting for green cards.

No Ban Act and diversity visa

National origin-based Anti-discrimination for Nonimmigrants Act (No Ban Act) is included in the Bill. The Act prohibits discrimination on religion and restricts the presidential authority to issue any bans. Diversity visas increased from 55,000 to 80,000.

Immigrants and refugees integration and citizenship

The Bill provides funding to local government, state governments, educational institutions, and not-for-profit organizations for expanding programs for promoting integration and inclusion of immigrants and refugees. Also, assisting the individuals trying to obtain citizenship.

Economic development

To ensure the economic growth of the country, the Bill removes employment-based visa backlogs, reduces waiting time, and eliminates per-country visa caps. This Bill provides that U.S university graduates with STEM degrees can stay in the country.

Prioritize smart border controls

Technological and infrastructural development in existing border resources

The Bill provides allocation of additional funds for immigration enforcement for developing and implementing technology to facilitate the screening process, with the ability to identify contraband at every entry port i.e., air, water, and land.

Management and protection of border and border community

For the training and continuing education of agents and officers’ safety and professionalism, the Bill provides funding. Further, the Bill creates a Border Community Stakeholder Advisory Committee, where the special agents of the Department of Homeland Security have the authority to investigate criminal misconduct as well as administrative misconduct. Furthermore, the Bill provides funding and authorizes the Department of Homeland Security in coordination with the Department of Health and Human Services (HHS) to set guidelines and protocols related to care for individuals, families, and children in Border Patrol Custody.

Criminal organizations

The Bill amplifies the ability to prosecute a person indulged in trafficking and smuggling, who are responsible for migrants exploitation. Under the Foreign Narcotics Kingpin Designation Act, the Bill widens the scope of the investigation and intelligence collection to increase sanctions against foreign narcotics traffickers. Also, for the improvement and expansion of transnational anti-gang task forces in central Asia, the Federal Bureau of Investigation, Department of Homeland Security, and Drug Enforcement Agency are required to work in coordination with the secretary of state.

Address root causes of migration

Programs to reunite the family

The Bill provides a safe legal passage for people seeking protection, including through designated processing centres throughout central America. The Bill creates the Central American Family Reunification Parole Program and also re-institutes Central America Minor Program to reunite children and families, approved by a family sponsorship petition.

Immigration courts and vulnerable individuals

The Bill amplifies the family case management program and training for immigration judges, the Bill reduces the immigration court backlogs with the technological developments in the court. Further, the Bill reinstates fairness and balance to the immigration system by authorizing the judges to review and grant relief to deserving individuals. Furthermore, the Bill funds the legal orientation programs and counselling for children, vulnerable persons, and any other person as and when necessary.

Asylum seekers and vulnerable population

The Bill provides funds to reduce asylum application backlogs and put an end to the one-year deadline for filing asylum claims. Further, the Bill increases protections for T visa, U visa, and VAWA applicants.

Future ahead

According to the United States Census Bureau, the United States is in the condition of population contraction rather than growth. It is accepted that 20% of the population will be above 65, regardless of the immigration scenario. If this holds out, the United States will require more young people for the economic growth of the country. For economic development, it is essential to sustain the working-age population by accepting migration. Some parts of the United States have begun to experience a population slowdown.

Here, immigration policies play a significant role in turning the downsizing of the population. Biden’s administration promotes family-friendly immigration policies, hence, covering the gap between the working-age population and old age population. The said report estimated that one in five individuals in the United States will be of retirement age.

Impact of immigration

Immigration not only affects the person who is moving to another country but also affects the economy and the population of both the home country and the host country. Immigration has its challenges and benefits. For an immigrant to enjoy the benefits, they have to endure certain challenges, similarly, the countries benefit from the talent and skills brought by the immigrants resulting in economic growth but on the same hand the country’s population increases.

Immigration benefits

One of the reasons to immigrate is in search of better life and opportunities. The new country provides new life and new opportunities which weren’t available previously.
An individual is benefited economically as well as socially.
It helps in the economic growth of an individual in terms of better and fair wages, better employment.
Immigration doesn’t guarantee the success rate of an individual, it requires hard work. However, people are taking such risks for better life and opportunities.

Immigration challenges

It is doubtful that immigration gives a fair chance of new life and opportunity, however, the primary challenge faced by the immigrants is the cost of immigration involved.
Another challenge faced by the immigrants is adjusting and mixing the culture of host countries, and difficulty in understanding the laws of the country. There are circumstances where an individual leaves the home country with the fear of prosecution, they often face discrimination in the host country.

The immigration and policies governing immigration impacts the economy and the population of the country,

Economy

Immigrants move to developed countries in search of new job opportunities. Immigrants are either workers or employees of industrialized countries and play a vital part in the countries’ economic development. Immigration has become an integral part of the global development agenda. Sustainable Development Agenda 2030 has recognized and acknowledged the contribution of migrants in the economic growth and development of the countries. They contribute to the gross domestic product. Immigrants play a distinct role in economic contribution:

As a worker, they have an impact on the labour market, they influence domestic investment and alter the country’s income distribution.
As students, they contribute towards increasing the human capital in the country.
As a consumer, they increase the demand for foreign as well as domestic goods and services. When demand is created, thus, affecting the price and production of the goods and services.
As an inventor and entrepreneur, they contribute to technological changes and create job opportunities.
As a taxpayer, they contribute to the public budget.

Immigrants stimulate the economic growth of the country. Through immigration country’s working-age population increases and contributes towards the development of human capital and technological aspects. Thus, immigration affects the economy of both the host country and the home country.

Host country

Due to immigration, the host country experiences advantages as well as certain challenges. Over time, it is evident that immigration creates population gush, which effectuates pressure on the development of infrastructure and services for the higher population. When an immigrant moves to a new country, they face many problems related to finding a house, employment, adjusting to the culture and the laws. Host countries face challenges to assimilate immigrants into society and provide support. Immigration influences the supply of the workforce in the country. There are two aspects of immigration in the host country. First, the positive, it increases the economic growth and development of the country, and second, the negative, it threatens the national security through illegal immigrants.

Home country

When immigrants move from their home country to another country, the question arises, why and what the country is not able to provide. The reasons to immigrate include the standard of living, no job opportunities, low wages, lack of education opportunities, and other reasons. The country must analyze the reason for a large number of the population moving to another country. Immigration tends to weaken the working-age population, level of production, and the economy of the country.

Population

According to the United Nations report, the world’s population is expected to increase from 7.6 billion in 2017 to 8.6 billion by 2030. Since the development of an effective transportation system, the developed countries have gained population due to migration. Migration is considered to be the primary source of population growth in the developed countries. In search of better opportunities and life, individuals migrate.

A country’s immigration policy drives the population of that country. Most of the country’s migration policy promotes the immigration of highly skilled workers, increasing the population. Many governments have policies to bring back the immigrants of their country so that the working-age population and human capital in the country are maintained. Immigration policies have affected the population of both the host and home countries. On one hand, host countries/ developed countries’ population tends to increase specifically the working-age population and on the other hand, the population of the home country tends to decline specifically the working-age capital along with the increase in the old-age population. Countries, where the working-age population is declining, must analyze the scenario, why people are leaving their home country and must implement such to attract immigrants.

India – a source of immigrants

According to the World Migration Report 2020, India sends the largest number of emigrants ( people leaving the origin country). India is a top source of emigrants since the United States started tracking the origin of the migrants in the 1990s. The total number of international migrants has doubled over the past 25 years and one in twenty-five migrants are born in India. For better life opportunities and standard of living people migrate. The main destinations for Indian migrants are the United States and the UAE. In the United States, nine in ten Indian Americans are born in India and work in the States. Indian Americans fall under the category of highly educated, skilled, and earning among the racial and ethnic groups. The political and social factors influence the Indians to emigrate in reach of better educational opportunities, health care, job opportunities, and facilities available with better economic growth opportunities for a person.

Immigrants – strength or burden to a country

According to the Pew Research Centre, most of the host countries consider immigrants as a strength rather than a burden in the country, including the largest immigrants receiving countries United States, Germany, Canada, France, and the United Kingdom. Some countries believe that immigrants make the country strong with their work and talent whereas other countries believe that they take the job opportunities of the citizens. Country’s have different immigration policies and every country has a different perspective of seeing immigrants. Like the United States, considers immigrants as a strength but at the same time, the US considers that immigrants increase the risk of terrorism.

Conclusion

It can be concluded that the immigration policy in the United States has evolved according to the needs of the people and the economic condition of the country. Immigration policy impacts the economy and the population of the home as well as the host country. Also, immigration policies play a significant role in the economic growth and development of the country.