Migration: An answer to a European demographic dilemma? Hervé Le Bras Research Director École des Hautes Études Sociales (EHESS) and French National Institute for Demographic Studies (INED), France [email protected] The ‘Lampedusa Dilemma’: Global Flows and Closed Borders. What should Europe do? EUI, Florence 17-18 November 2014 INTRODUCTION The EUI Forum on Migration, Citizenship and Demography is a joint initiative by the four departments of the EUI, the Robert Schuman Centre for Advanced Studies and the Max Weber Programme. It brings together critical analysis, informed debate and policy recommendations from the wider field of citizenship and democracy, demography, migration and asylum governance, and the management of cultural diversity. Professor Anna Triandafyllidou is the Scientific Organiser of the Forum’s Inaugural Event: The 2014 Conference on the Lampedusa Dilemma. Policy experts and scholars from a variety of disciplines will share their views on migration governance, human rights, asylum-seeking and international protection, as well as irregular migration. The Lampedusa disaster of October 2013 demonstrates the dramatic events taking place in the Mediterranean area which require urgent, forward-looking and well-thought out responses. Can migration counteract population decline in Europe? The question is often addressed to or by demographers. But what population decline: the absolute number of people? The labor force? The ratio of old people to people in working age? We will consider the three possibilities. Furthermore, should we take Europe as a whole or follow each country separately, for the differences in age structure and population dynamics are wide all over Europe. We will consider the two situations: Europe as a whole and each country as a closed nation. Europe as a whole suppose a perfect fluidity of labor in Europe, countries with surplus filling countries with deficit. Each country separately means no net migrations between European countries. The truth lies between these two extremes we will compute. First we will estimate the amount of net migration involved in each of the three hypotheses. In a second time, we will ask the question itself, if one can say: Are there other means to stabilize the labor force and the dependency ratio. Furthermore, is the stabilization of the population a necessity? Page 2 MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN STABILIZATION OF THE EU POPULATION, LABOUR FORCE, DEPENDENCY RATIO First, the amount of migration that can overcome population decline : Amount of migration that can overcome population decline The following method was adopted for each country and for the 27 members together. Starting in 2005, the population projection was performed using the data set of the UN population division (medium hypothesis without migration). UN provides the number of people in each five years age group for each sex from now until 2050 and the mortality rates for these age groups by sex for each five years period. The only missing distribution is net migration by age. This is a very stable distribution all around the world and since long time. We took data available from France. Combining these data is demographer's work. For each five years leap from 2005 until 2050, the age pyramid was computed with a null net migration at each age. The total population was obtained by adding all the age groups. The result was compared with the total population five years ago. If there was a decline in number, a net migration was added at each age group according to the migration age profile in a way to restore the total number of people five years ago. If there was no population decline, no net migration was added1. Finally, the total amount of net migration between 2005 and 2050 was computed. The net migration proposed by the UN for the medium projection with migration was subtracted to give the amount of supplementary net migration imposed by the hypothesis of no population decline. The table 2 contains the annual number of net migrants asserted by the UN for each country by periods of five years (UN predicts a low level of net migration not at pace with the data collected by the UE states as shown later). Let us have a comment of the results : Amount of net migration that can overcome a decline of the labor force. If there is a perfect fluidity of migration inside the UE, surprisingly, the amount of surplus net migration necessary to overcome total population decline is very low with only ten millions people in 45 years, or 220 000 each year. If there is absolutely no fluidity, the total amount grows to 30 million, or 670 000 each year, a fairly reasonable number. But, there are great contrasts by country: 7 million for Poland and Germany, 5 million for Romania, 3 million for Italy and nothing for 13 countries. The UN projections do not take into account the peculiar historical situations. Likely, fertility will increase in former eastern countries and mortality decrease for reason of convergence with the west. Thus, the result for Poland and Romania are somewhat exaggerated. Second : the amount of net migration that can overcome a decline of the labor force : The labor force was taken in the demographic meaning, i.e., the number of people aged 15-54 years. The same method as for the total population was applied with a light modification. Having determined the gap in number in the labor force at five years intervals, the profile of migration was used to compute the total number of migrants to be injected (not equal to the deficit EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY Page 3 MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN in the labor force because the age profile of migrants cover all the ages from 0 to 100 years and more). The result can be red on the second row of table 1. Like the preceding result, the net-migration forecasted by UN division of population is subtracted. Because of aging, the decline of the labor force would be more severe if not compensated by net migration. 60 millions of people will miss even in the case of perfect fluidity of the labor force, 65 million either. It is not an impossible goal. According to the SOPEMI data (and not the UN data), net migration in Europe can be estimated to 1,8 million people in the recent years (We know the in and out migrations in 16 countries totalizing 280 million inhabitants. In 2012, the total regular inmigrations in these countries amount to 2,35 million and the total outmigrations to 1,36 million, a ratio of 0,58. Applying the same ratio to the whole UE gives a net migration of 1,8 million, equivalent to 80 million in 45 years). Thus, 60 million necessary to maintain the labor force means less than a doubling of the net migration in Europe. As it can be seen on the table 1, two thirds of the deficit are due to only 4 countries, Germany, Spain, Poland and Italy. The gap between the net migration for UE as a whole and for each country individually is much less for the labor force than for the total population. The reason for that is simple. All countries will experience a decline of their labor force in the lack of a surplus migration. Only in certain period some will have without net migration a surplus that compensates the deficit of the others. Maintaining the old/15-64 dependency ratio in the whole EU. The last case: maintaining the old/15-64 dependency ratio at its present level in all countries or alternatively in the whole EU. In the same way as in the preceding section, one can compute the amount of net migration necessary to overcome the effects of aging on the dependency ratio. The result appears in the third row of the table 1. The numbers of migrants involved does not show any common measure with those in the two former hypotheses. Alone or together, the UE countries should receive between 561 and 582 million net migrants until 2050. Most if all the countries would need more migrants than their present population : 68 million for Spain, 81 million for Poland (in this case, the actual low dependency ratio will rise rapidly with increasing expectation of life) and all the former eastern countries. In Germany, in France, in Italy, in United Kingdom, the amount of net migration would amount to the actual population, or for the last three states, more than one million more people from outside each year. Clearly, the third hypothesis is unrealistic. Immigration is not a cure for aging populations. The two first hypotheses are more manageable, but we must ask their feasibility. GOING BEYOND DEMOGRAPHIC COMPUTATIONS Stabilization by net migration is a shortcoming. Postulating the stabilization by net migration is a shortcoming. First they can be other means of stabilization than net migration. Second, it is not proved the stabilization is an optimal goal. Let us discuss these two points. The demographic age bracket 15-59 years or 20-64 or any other is not an accurate indicator of the labor force. It is more recommended to use participation rates by age of men and women. The labor force depends from one hand from the age pyramid and for the other from the values of the EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY Page 4 MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN participation rates. Net migration is therefore not the only mean to increase the labor force. Changes in participation rates can do the job. The heterogeneity is big along the EU countries. The employment rates (proportion of workers in the population 15-64 years) stretch from 58 % in Poland to 76 % in Sweden. Two main potential reserves of worker does exist : women and people over 55 years. Employment rate of women is 46 % in Italy and 74 % in Sweden. A first scenario would be a convergence of the participation rates of the women toward those of the women in 2050. Second cause of discrepancy, the early departure from work : participation rates of men fall under 50 % at 58,5 years in France, at 63,5 in Sweden. A second scenario will be a convergence of the participation rates of the 55-64 years toward the Swedish rates in 2050. They are other differences particularly the participation rates of the young very high in Denmark. Two last hypotheses were tested : a convergence of the participation rates of the men and the women toward the Danish rates at each age and furthermore, a convergence of the participation rates of the women to those of the Danish men2. The increase of the labor force obtained by each of these four scenarios are displayed on table 3. The sum of the gains of the two first scenarios or of each of the two last is enough to fill the gap between the number of workers in 2007 and 2050. In a few countries like Germany or Bulgaria, a deficit remains in 2050, but in many others a surplus appears, i.e. in France, in Ireland, in the Scandinavian countries. It must be stressed the different hypotheses are not utopian. The convergence of participation rates of men and women in en the way since the 1960's. The profile of employment by age in Denmark or in Sweden is not out of reach for the other European countries. It is not question of taking characteristics from another civilization or another system like communist regimes or far-east Asian countries. Projections are made usually under the assumption of any other factors maintained constant. Removing this assumption increase the degree of freedom of the future. The second point concerns the benefit of a stabilized population against a decreasing one. There no evidence of such a benefit. Since a half century, any researches were performed to compare demographic and economic rates of increase without any clear result. Furthermore, a recent paper of Ronald Lee from Berkeley suggests there is some advantage to earn from a weakly decreasing population. Lee's argument rests on the age profiles of private and public benefits, consumption and labor income he collected in 40 countries. Lee looked for the level of fertility maximizing the overall gain all the life cycle long. He found for most countries a fertility level under the replacement value. The same criticism can be addressed as that in the preceding paragraph: when fertility and age pyramid change, the profiles of public and private benefits and payments change as clearly illustrated by the large gap between the profiles of the 40 countries. Lee is aware of that criticism, but he argues that he is not addressing a final state but a cross sectional tendency (but he uses stable population pyramids for its demonstration). The interest of Lee's work is partly elsewhere. He reminds us not to take quantitative population data too seriously, including migration flows. The count may be more for their quality, for the differences the impulse in a society than for their rough number. EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY Page 5 MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN A FINAL REMARK WITH A FINAL GRAPH Difficult to attract migrants in sufficient number. Even in the case where net migration can play a role, it will be difficult to attract migrants in sufficient number. This remark sounds strange in such a meeting devoted to the migratory pressure from the south, but it is historically documented. When the demand for work was high in Europe after the first world war or in the sixties, the migrants did not come in sufficient number. It was necessary to send recruiters who solicited candidates. The past trend of net migration toward Europe is more close to a sinusoid than an exponential with the exception of periods of high economic growth. Moreover, the emigration of European citizens counterweight more or less the immigration of foreigners. This is clear in Ireland and also in France and explains the sinusoidal shape of the net migration in France for the last fifty years as one can see on the following figure. Figure 1: Annual net migration in France since 1975 Source Data are taken from the data banks of Eurostat , the Population Division of the UN and INSEE. -SOPEMI, annual report (from 2006 to 2013), OECD, Paris -H. Le Bras : The Nature of Demography, Princeton U.P., Princeton, 2008. -R. Lee, A. Mason : “Is really low fertility a problem : Population aging, dependency and consumption”, Science, vol. 346, Issue 6206. -Les chiffres de la politique de l'immigration et de l'intégration, Rapport au Parlement, La Documentation française, Paris, 2013 EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY Page 6 MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN Table 1 Total net migration necessary to stabilize until 2050 the population, the labor force and the dependency ratio (thousands) (1) stabilization of the total populations (2) stabilization of the labor force (3) stabilization of the dependency ratio (people over 64 on people 15-64 EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY Page 7 MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN Table 2 Annual net migrations (thousands) as forecast by the UN division of population for the 27 countries and the EU (Croatia not included) Period 2005 2010 2015 2020 2025 2030 2035 2040 2045 Total -10 -15 -20 -25 -30 -35 -40 -45 -50 (annual x5) Country Austria 32 30 30 30 30 30 30 30 30 Belgium 68 30 20 20 20 20 20 20 20 Bulgaria -17 -10 -10 -10 -10 -10 -10 -10 -10 Cyprus 9 7 6 5 5 4 3 2 1 Czech Rep. 60 40 30 30 30 30 30 30 30 Denmark 18 15 15 15 15 15 15 15 15 Estonia -3 0 0 0 0 0 0 0 0 Finland 14 10 10 10 10 10 10 10 10 France 104 130 120 100 100 100 100 100 100 Germany 120 110 100 90 90 90 90 90 90 Greece 11 10 10 20 20 20 20 20 20 Hungary 19 15 15 15 15 15 15 15 15 Ireland 22 10 10 10 10 10 10 10 10 Italy 182 180 150 120 120 120 120 120 120 Latvia -17 -2 -2 -2 0 0 0 0 0 Lithuania -32 -6 -4 -3 -1 0 0 0 0 Luxemb. 8 5 5 4 3 3 2 1 1 Malta 1 1 1 1 1 1 1 1 1 Netherland 11 10 10 10 10 10 10 10 10 Poland -14 -8 -8 -8 -8 -8 -8 -8 -8 Porugal 20 20 20 20 20 20 20 20 20 Romania -11 -9 -9 -9 -9 -9 -9 -9 -9 Slovakia 6 3 3 3 3 3 3 3 3 Slovenia 9 4 4 4 4 4 4 4 4 Spain 150 120 100 100 100 100 100 100 100 Sweden 52 40 40 40 40 40 40 40 40 Un.King. 168 180 180 170 170 170 170 170 170 1360 1190 -535 210 1550 690 -15 520 4770 4350 855 695 510 6760 -115 230 160 45 405 410 900 415 150 205 4850 1860 7740 Total 39360 1371 936 846 786 789 788 787 785 784 Disclaimer: The views and opinions expressed in this paper are those of the authors and do not necessarily reflect those of the EUI’s Forum, its constituent parties or scientific directors and organisers. EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY Page 8 ENDNOTES MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN 1 We bet indulgence for these computations were made quite roughly, but they can be done in a more refined way if more time is devoted to the model and to the data to be collected and criticised. The result being very clear, we did not invest times in such refinements. 2 The computation were made using the participation rates by age and sex in 2007 available on Eurostat databank. As for the net migration computations their precision is a bit illusory. They must be taken as giving an order of magnitude and, in this respect, the results give clear indications. As for the first part of the paper, the computations can be made a bit less roughly and with more recent data, but it seems unlikely the main tendencies here stated would change. EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY Page 9 MIGRATION: AN ANSWER DEMOGRAPHIC DILEMMA? TO A EUROPEAN MORE ABOUT THE EUI FORUM ON MIGRATION, CITIZENSHIP AND DEMOGRAPHY Scientific Directors Professor Joseph H. H. Weiler, President of the EUI Professor Brigid Laffan, Director of the Robert Schuman Centre for Advanced Studies, EUI Mission Statement The EUI Forum on Migration Citizenship and Demography is a 2-year programme (2014-2016) that brings together professors, senior fellows, post-doctoral researchers and PhD students from the four EUI departments, the Robert Schuman Centre for Advanced Studies and the Max Weber Programme, over a set of themes of common expertise and interest. Building on a wealth of academic publications, policy papers, conferences and workshops, produced by EUI scholars in the wider field of citizenship and democracy, demography and migration management, cultural diversity and ways to address it, the Forum offers critical analysis, informed debate and policy recommendations. Topics to be addressed by the Forum activities in the form of Oxford debates, policy workshops and academic conferences include: FORUM website The management of cultural and religious diversity in Europe at times of intensified globalisation trends and increased migration flows Balancing demographic and labour market challenges. How to build an effective and efficient migration and migrant integration policy in Europe? Upholding our asylum commitment in an increasingly volatile geopolitical framework: Ethical and political considerations. EU law and policy on migration and asylum: Fit for purpose for 2030? Europe: a continent of emigration, immigration and mobility. Past experiences, present challenges and future trends. http://www.eui.eu/Projects/TheForum/Home.aspx EUI FORUM on MIGRATION, CITIZENSHIP and DEMOGRAPHY
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