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Über dieses Buch

This is the first book that takes a theoretical approach to the effects of international immigration by considering the current economic topics confronted by more highly developed countries such as Japan. Developed here is the classic trade model by Heckscher–Ohlin–Samuelson, McDougall’s basic model of the international movement factor, the urban–rural migration model by Harris–Todaro, and Copeland–Taylor’s well-known model in the field of environmental economics by introducing new trends such as economic integration including free trade and factor mobility between countries at different stages of development. Coexistence of two types of immigrants – legal, skilled workers and illegal, unskilled workers – without any explicit signs of discrimination, transboundary pollution caused by neighboring lower-developed countries with poor pollution abatement technology, difficult international treatment of transboundary renewable resources, the rapid process of aging and population decrease, the higher unemployment rate of younger generations, and the serious gap between permanent and temporary employed workers—are also considered in this book as new and significant topics under the context of international immigration. Taking into account the special difficulties of those serious problems in Asia, each chapter illustrates Japanese and other Asian situations that encourage readers to understand the importance of optimal immigration policies. Also shown is the possibility that economic integration and liberalization of international immigration should bring about positive effects on the economic welfare of the developed host country including the aspects of natural environment, renewable transboundary resources, the rate of unemployment, and the wage gap between workers.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction and Summary

Although many East Asian countries have been the source countries of many international migrant workers, the history of introducing foreign workers is relatively recent and short. For example, in Japan, it has been only in the last 25–30 years that remarks have been made about the supposed and various social problems stemming from foreign workers. On the other hand, as international migration has a comparatively longer history in the United States and Europe, it is necessary to review the historical facts that pertain to Western human mobility, as possible precedents. Especially, as the subjects of future research, the economic effects of international immigration are quite important and worthy of study in the context of East Asian countries (including Japan, South Korea, and Taiwan). In this chapter, we briefly review the historical development of international migration in the United States and Europe, as well as worldwide.
Kenji Kondoh

International Migration and the Economy of the Host Country

Frontmatter

Chapter 2. Permanent Migrants and Cross-Border Workers: The Effects on the Host Country

When we use the word “migrants,” we tend to disregard the variation in their behavior. We can in fact classify migrants according to length of stay, purpose of migration, geographical origin, or historical background. In this paper, I focus on the time interval of migration and distinguish the three types of migrants: permanent migrants, temporary migrants, and cross-border workers.
Kenji Kondoh

Chapter 3. Legal Migration and Illegal Migration: The Effectiveness of Qualitative and Quantitative Restriction Policies

There are many theoretical studies on the economic welfare of host countries that have to deal with the problems of immigration on an international level. Most of these studies have concluded that immigration is beneficial to the host country. Berry and Soligo (1969), Rivera-Batiz (1982), Quibria (1989), Wong (1995), and Kondoh (1999) are typical of these, but it should be noted that these authors considered workers of similar ability and skill level only. Realistically, potential immigrants have different levels of ability and skills, and the government of the host country is likely to be selective in granting entry and work permits to foreign workers. In reality, developed countries accept only those skilled workers whose abilities they need. For less qualified and unskilled workers, the possibility of legal entry is more limited. The theoretical analyses usually failed to consider one major reason why developed countries are so reluctant to accept immigrants, to minimize possible negative externalities associated with large inflow of foreign workers. Qualitative restrictions are therefore usually adopted, not only to gain useful skilled workers for the workforce but also to prevent a flood of “undesirable,” disgruntled immigrants who might bring problems with them.
Kenji Kondoh

International Immigration and the Labor Market

Frontmatter

Chapter 4. International Immigration and Economic Welfare in an Efficiency Wage Model: The Coexistence Case of Both Legal and Illegal Foreign Workers

After the collapse of the so-called bubble economy, the labor market of Japan seems to have been changed drastically. High wages and low unemployment because of the structural shortage of workers, and discussions on various social troubles caused by an increasing number of illegal workers who are attracted by the Japanese economic boom, are things of the past. Now, owing to the serious failure of governmental financial management, the unemployment rate has reached about 5 %, which is the highest since 1955. However, it is remarkable that the high unemployment rate has not prevented the Japanese people from enjoying their relatively established lifestyle. Although individuals have no chance of becoming regular members of a company after graduation, they can gain sufficient wealth to enjoy life by working part time. Some middle-aged workers have been dismissed because of the recent serious depression, but, on the other hand, some younger people voluntarily choose to be unemployed or to support themselves by part-time jobs and wait to obtain much better regular jobs. The phenomenon during the last 2 years of an increasing number of job offers with a constant unemployment rate shows that people in Japan are “luxuriously” particular about their jobs.
Kenji Kondoh

Chapter 5. Temporary and Permanent Immigration Under Unionization

Some argue that labor is the least mobile factor of production in the real world due to legal barriers set up by sovereign states. Despite of being an integral part of globalization, immigration is viewed negatively in public opinion. Often when related issues appear in the media, they are about illegal immigrants or some other negative images such as taking jobs away, depressing wages, etc. It seems the imperfections in the labor market, such as unionization, also serve to create the negative images. For instance, it is alleged that “mass immigration helps employers and hurts workers, and unions flourish when immigration is low and they flounder when immigration is high” (Salt Lake Union Tribune, September 3, 2001). There are also cries that the AFL-CIO has abandoned American workers, because the Executive Council of the AFL-CIO in February 2000 announced a reversal in its posture, by proclaiming that it now “proudly stands on the side of immigrant workers.” While before that, the AFL-CIO had sought to protect wages of native-born workers by excluding immigrants. However, by making immigrants more vulnerable, such sanctions also helped put pressure on the wages of native-born workers. Also, in Japan while many employers hire immigrants (sometimes illegal ones), it is the local workers and the government that are against immigration.
Kenji Kondoh

Chapter 6. The Frequency of Migration and Optimal Restriction Policies

Most of the studies on the economic welfare of host countries of international immigration have concluded that immigration is beneficial to the host country. The typical examples of such studies are Berry and Soligo (1969), Rivera-Batiz (1982), Quibria (1989), Wong (1995), and Kondoh (1999); however, it should be noted that these studies consider workers who have the same ability, skill level, and working spirits. In reality, potential immigrants have different levels of ability, skills, and work spirits, and the government of the host country is likely to be selective in granting entry and work permits to foreign workers. Further, developed countries accept only skilled workers. Sometimes, these theoretical analyses failed to consider the major reason why developed countries are reluctant to accept immigrants. In order to minimize the potentially negative externalities associated with the sizeable inflow of foreign workers, it is necessary to consider the effectiveness of qualitative restrictions. When adopted effectively, these policies enable countries not only to gain useful skilled workers for their workforce but also help prevent an influx of “undesirable,” disgruntled immigrants who might bring problems with them.
Kenji Kondoh

International Immigration and the Natural Environment

Frontmatter

Chapter 7. Trans-boundary Pollution and International Migration

Environmental degradation caused by pollution generated by industrial production has become one of the world’s most serious problems. One of the reasons why this problem is difficult to solve is that less developed countries lack the ability and financial resources to control pollution. Furthermore, their governments often give priority to economic growth at the expense of the quality of the environment.
Kenji Kondoh

Chapter 8. Trans-boundary Pollution and Brain Drain Migration

Industrial production generates global pollution that in turn causes environmental degradation—currently one of the most serious global problems. The main reason why this problem is difficult to solve is that less developed countries do not have the ability and financial resources necessary to control pollution. Furthermore, their governments often prioritize economic growth at the expense of environmental quality.
Kenji Kondoh

Chapter 9. Pollution Abatement Equipment and International Migration

The importance of the environmental industry, which supplies environmental equipment and services, is steadily increasing given the drive to reduce pollution caused by smokestack industries and to preserve or improve the natural environment. Correspondingly, the global market of the environmental industry is also growing.
Kenji Kondoh

Chapter 10. Unemployment, Environmental Policy, and International Migration

Among the serious economic problems faced by developed countries like Japan, decreasing population and unemployment are the most difficult to deal with. One of the reasons is that these two phenomena are supposedly contradictory—a decreasing population usually implies a shortage of workers. In Japan, temporary economic recession generates a large number of unemployed persons—as many as 3.67 million as of September 2009 and around 1 million more than the October 2008 figures. The working-age population of Japan has been decreasing since 1995, and it has become necessary to introduce foreign workers to sustain long-term economic performance. However, recent economic conditions have diverted attention from this impending issue to the pressing problem of how to supply enough job opportunities to domestic labor.
Kenji Kondoh

Chapter 11. Renewable Resources, Environmental Pollution, and International Migration

To realize optimal management of trans-boundary renewable resources is very hard because not only is international cooperation indispensable, but several economic aspects should also be considered. In the familiar case of Japan and China, for example, East China Sea is a hot spot between the two countries. Not only is a natural gas field, which sometimes causes territorial conflicts, located just close to the border but the area is also quite rich in marine resources. As fishes are a trans-boundary renewable resource, international cooperation is required for its management. However, this is difficult to establish, and overfishing is common. For an optimal resource management policy between Japan and China, we need to consider two important aspects that have been ignored in previous studies. The first is environmental pollution caused by the smokestack manufacturing industry, which generates negative externalities on the stock of renewable resources. We focus on environmental pollution in the East China Sea, which comes mainly from China because of relatively poor pollution abatement technologies. Environmental pollution from industrial production has become one most serious problems of the world, which is difficult to solve because underdeveloped countries, without sufficient skills and funding, usually cannot control pollution well. Moreover, their governments often give priority to economic growth over protection of the environment. The second aspect is international factor mobility. Not only international trade strategies but also FDI and migration policies should be considered important for optimal economic management. Migration from China to Japan, which is the focus of this study, is not very large now, but the potential wage gap may cause a flood of labor mobility in the near future.
Kenji Kondoh

International Immigration and Economic Integration

Frontmatter

Chapter 12. International Integration with Heterogeneous Immigration Policies

Migration flows are a powerful source of economic and social change in both destination and origin countries. The regulation of international migration flows is a very sensitive policy area which is almost exclusively in the hands of domestic policymakers with little room left for multilateral policymaking. Even in the European Union, an area where the process of economic and social integration is pervasive and intense, the harmonization of immigration policies is confined to the establishment of uniform rules on specific issues (such as asylum seeker regulations) or to the definition of broad principles.
Kenji Kondoh

Chapter 13. Emigration, Immigration, and Skill Formation: The Case of a Midstream Country

The word “international migration” usually refers to labor inflows for highly developed countries (HDCs) such as Germany, Japan, and the United States. For lower developed countries (LDCs) such as Bangladesh, Cambodia, and most African countries, migration implies an outflow of labor. Most of the economic literature has focused on mutual relationships between the source and host countries and studied the effects of international migration on the economies of those countries. However, globalization in the more recent past has resulted in several new types of international migration. In observing the recent expansion of multilateral economic integration between countries at various phases of development, we recognize that several medium-developed countries (MDCs) are playing a new role in the international labor market. These MDCs export labor to HDCs and, simultaneously, import labor from LDCs. In other words, these countries are coincidentally host as well as source countries and are at the midstream of international labor flows.
Kenji Kondoh

Chapter 14. Can the Economic Partnership Agreements Help the Developed Country with a Decreasing Population?

In Japan, one of the most significant recent topics of discussion with regard to international migration is introducing workers from Indonesia in the field of health-care services. Japan intends to accept 400 nurses and 600 nursing caregivers in the next 2 years—from fiscal 2008 onward. In order to work as health-care professionals in Japan, it is imperative that workers possess the capability of communicating in Japanese as well as medical knowledge and skills. Therefore, it is necessary for Japan to provide these foreign workers sufficient supplementary education and training after they are accepted in the country. Thereafter, it is expected that Indonesian nursing caregivers will be treated almost at par with domestic skilled workers. This new aspect of the Japanese immigration policy is the result of the Economic Partnership Agreement (EPA) between Japan and Indonesia, which was concluded in 2007. Undoubtedly, the decreasing population in Japan was one of the main motives behind the EPA. Currently, although there exist a large number of illegal unskilled foreign workers in Japan and the younger generation that has failed to occupy permanent jobs, in the long term, securing a sufficient number of workers in order to maintain economic prosperity is also the one of most serious and difficult problems not only for Japan but also for a majority of the developed countries.
Kenji Kondoh
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