Take the Money and Run
Voluntary Return Programs
Gador Manzano Yolanda Vaccaro [email protected] [email protected]
Countries are paying immigrants to
leave
• The Czech Republic, Japan, Spain, and UK are
paying immigrants to go back to their home
countries. Other countries are considering it
• Voluntary-return programs: an unexpected
repercussion of the international financial crisis in
develop countries
• Programs try to affect immigration outflow with
economic incentives
How does it work?
• In a nutshell: Gives economic incentives to
immigrants to return to country of origin in exchange
of giving up legal rights
• In some cases, countries leave the door open for the
immigrant to return when the economy improves, in
others the immigrant can never return
• Targets mostly legal immigrants
A Mismatch
• Driving force seems to be the economic/financial
crisis in host country…
…..but for immigrants pushing force seem to be
situation in country of origin
• If prospects are better in host country there is no
incentive to return
• For many immigration is a long-term decision that is
unlikely to be affected by a recession of limited
duration
Spain in Disarray
• Dramatic rise in immigrant population
• In 1999: 664,650 immigrant residents in Spain
• In 2009: 5,598,691
• In only a decade the number of immigrants has increased by 8.42%
• The immigrant population went from 1.7% to 12%
• The real number is higher than the official number
Source: National Statistic Institute.
Heading the EU
• In 2007, Spain became the country in the EU with the
highest immigration rate: 10%
• France: 9.6%
• Germany: 8.9%
• UK: 8.1%
• Moroccans, Rumanians and Ecuadorians are the
countries with more immigrants in Spain
Law trying to catch up with reality
• The first law dealing with the immigration phenomenon
dated from 1985
• In 2000 a new law was passed to cope with the growing
immigration
• But three changes have already been done to the 2000
law. The fourth change is currently been debated in the
Parliament
• Reality changes faster than the law can adapt, even if
the law is in permanent change
The Official Numbers
Spanish population 46.6 millions
Foreigners 5.6 millions (12% )
Number of unemployed 3,564,889
Number of foreigners unemployed 485,043
Foreigners unemployed from non EU 329,674
Immigrant unemployment 27.10%
General unemployment 15.20%
Source: National Statistic Institute
Where are the Immigrants from?
Region Total Population of Immigrants % of Immigrants EU 2,266,808 40.5%
Latin America 1,765,064 31.5%
Africa 998,024 (710,401 Moroccans) 17.8%
Asia 292,961 5.2%
Rest of Europe 221,004 3.9%
USA and Canada 51,921 0.9%
Others 2,909 0.1%
Source: National Statistic Institute
Why Immigrants Suffer from Higher
Unemployment?
• Work in sectors which have suffered the most from
the crisis (eg. construction)
• Temporary contracts
• Lack of networks
• The last ones to be hired
• Over-represented in jobs with low qualifications
Thank You…and Bye for Now
Spanish Voluntary Return Program
• Approved in September 2008
• The program is not working according to plan
• In November 2008 140,000 eligible people
• On June 9, 2009 Only 5,088 have applied
Requirements
• Only for immigrants living legally in Spain
• Only for those working legally in Spain, and able to receive unemployment benefits.
• The immigrant must give up the permit of residence and also the work permit.
• Only for nationals of the following countries: Andorra, Argentina, Australia, Brazil, Canada, Chile, Colombia, Dominican Republic, Ecuador, Russia, The Philippines, Morocco, Mexico, Paraguay, Peru, Tunisia, Ukraine, Uruguay, U.S.A. and Venezuela .
Could they return to Spain?
• No sooner than 3 years after leaving
• Need a job offer or other reason to qualify to return
to Spain
• Need to start the process from the beginning
therefore back to square one
How Much Money are We Talking
About?
• Unemployment benefit, no more than € 1,000 ($1,400) for a maximum of two years
• A lump sum of 40% in Spain and then 60% in the home country
• Average payment: € 9,035
How is it Working?
• 5,088 applicants (as June 8, 2009)
• 3,977 immigrants have returned home
• Cost: € 21,200,000
• 91% of beneficiaries are Latin Americans
Top 7 Countries
Country Accepted Offer Total Population PercentagesEcuador 1,749 413,715 0.42%
Colombia 771 292,971 0.26%
Argentina 364 140,443 0.26%
Peru 334 137,154 0.24%
Brazil 215 124,737 0.17%
Uruguay 173 50,544 0.34%
Chile 166 46,068 0.36%
Source: National Statistic Institute & Ministry of Labor and Immigration
Where are the Africans?
• They are staying put
• African immigrants work mostly in construction. A sector badly hit by the crisis
• With the exception of Morocco, there are no social security bilateral agreements between African countries and Spain
• Most of the African immigrants arrive undocumented and have not managed to enter the labor market legally
What’s wrong?
The Targeted Population
• The program only targets legal immigrants
• More able to find a job
• More likely to be integrated in Spanish society
• More to lose if they go back
• (including legal residency)
• Only immigrants from 20 countries are eligible
What’s also Wrong?
The Non-Targeted Population
• Housekeepers are not eligible
• Bolivians are not eligible
• Around 300,000 Bolivians in Spain, 70% without papers
• Bolivians did not need a visa to enter Spain until a year ago, therefore the number of illegals is much higher than other nationals
How to Fix it?
• Tailor the program also for undocumented workers
and workers not eligible for social security benefits
• Allow legal workers to go back to their home country
without giving up their residency upfront
• Create a win – win situation. Worker goes back, but
maintains his rights for a period of time