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Contents | Executive summary | How to obtain this publication | Additional information
The following OECD assessment and recommendations summarise chapter 6 of the Economic survey of Ireland published on 16 April 2008.
Contents
Migration has helped the economy grow rapidly but more should be done to integrate migrants
Ireland turned from being a traditional emigration country to an immigration country in the mid-1990s. The economic boom has spurred immigration, which got another massive boost after 2004 when Ireland opened its door to the new members of the European Union. Currently, around 15% of people living in Ireland were born outside the country and this share has doubled in just ten years. Immigration has boosted growth, alleviated labour market bottlenecks and kept Ireland attractive for multinational companies. As the majority of migrants are young and employed, they have not put major demands on public services or the welfare system. On the other hand, the rapid population growth has added to infrastructure bottlenecks and fuelled housing demand. With the free movement of people across Europe, the focus should be on better integration.
Inward migration has increased
In per cent of population, April data
Source: Central Statistics Office; Hughes, G. and E. Quinn (2004), European Migration Network - The Impact of Immigration on Europe's Societies: Ireland, ESRI - EMN.
Immigrants tend to have a higher education level than the native Irish. Yet, they often work in basic jobs and their wages are considerably below average. This suggests that Ireland may not be getting the most out of its immigrant workforce. Language training for adult immigrants should be stepped up as weaker linguistic skills are probably important in explaining the wage gap and international experience suggests that language training on arrival significantly improves future employability. Language support for migrant children is also important to avoid social disadvantages being perpetuated into the future. The number of special language training teachers is rising rapidly. Apart from language issues, job matching can be difficult, if immigrants have trouble getting their foreign qualifications recognised. Despite efforts at harmonisation at the EU level, to which the National Qualifications Authority of Ireland is contributing, certain regulated professions still have licensing requirements, which can be onerous, and the introduction of an on-the-job skill assessment programme for cases where qualifications are difficult to assess should be considered.
The infrastructure programme needs to cope with large uncertainties about future migration flows
In recent years, inward migration was well above the rates assumed in the official population projections. If high levels of inward migration are sustained, they will add to existing pressures on the physical and social infrastructure. On the other hand, lower inward migration or even a net outflow cannot be ruled out. Uncertainties about population growth pose a challenge for prioritising public spending and infrastructure planning: this relates to the extent and type of demand, as well as its geographic location. In this context, it will be important to extend user charges for infrastructure services. This would restrain demand, result in a more efficient use of infrastructure and help to signal where new investment is warranted. Project evaluation should include an analysis of the optimal timing of projects and choose projects that have the appropriate life span and flexibility. Planning should also seek to take other margins of adjustment into account. For instance, more electricity could be imported from other countries.
How to obtain this publication
The Policy Brief (pdf format) can be downloaded in English. It contains the OECD assessment and recommendations.The complete edition of the Economic survey of Ireland 2008 is available from:
- SourceOECD for subscribing institutions and many libraries
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Government officials with accounts ( subscribe) can go to the "Books" tab on OLIS
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Additional information
For further information please contact the Ireland Desk at the OECD Economics Department at eco.survey@oecd.org. The OECD Secretariat's report was prepared by Sebastian Barnes and David Rae under the supervision of Peter Hoeller. Research assistance was provided by Isabelle Duong.
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