Creative Class

Whether they see immigration as a good thing or a scourge, Americans like to think of their country as an immigrant-friendly place, with borders that are among the most open in the world.

But that’s not the case, according to a new comprehensive measure developed by the British Council and the Brussels-based Migration Policy Group. The Migration Integration Policy Index (MIPEX) rates the EU nations’ (plus Norway, Switzerland, Canada, and the U.S.—31 countries in all) efforts to integrate immigrants according to 148 policy indicators, which range from opportunities for education and political participation to levels of protection against discrimination, from prospects for reuniting with family to the likelihood of achieving permanent residence status and citizenship.

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In a recent article in the Washington Post, Reid Hoffman has suggested that the way out of this crisis is not with a stimulus to the “same old same old” but a return to the 1990s when small firms and entrepreneurship led the way to technological change through innovation from start-up firms. In fact, that trend started in 1982 and lasted for over 20 years as year after year new start-ups brought us the wonders of inventions that changed our lives for the better. Can this work again this time in green energy, sustainable development, and plug-and-play cars?

This is a good question but during the last quarter of the 20th century the economy was growing, we had a robust financial system, and technological innovation. Today, we have a mini-depression that may turn into a major one. The stimulus package and the financial bailout were needed to stabilize the economy and the financial system and it’s nowhere near finished.

I support policies to promote entrepreneurship but this is a long-term strategy. Do we really believe that immigrants are the way to solve our economic problems? Will they return again? We should start to lay the groundwork for entrepreneurship but it is not a short-term solution to our financial problems but a solution to our long-term challenges.

A new report from Statistics Canada provides a detailed look at the income levels of first-, second-, and third-generation Canadian immigrants. Chinese and Japanese immigrants have the highest income levels, exceeding those of “white” Canadians. Canadians of Arabic descent are next, followed by South Asians and West Asians. Canadians of Caribbean, African, Filipino, or Latin American background fare worse.

The Globe and Mail reports that:

The old vertical mosaic – with whites from Britain and Europe at the top and visible minorities underneath – is no longer valid. Instead, second- and third-generation Chinese and Japanese surpass all other groups of newcomers, including whites, while for blacks and other groups, there is little or no economic mobility across generations.

The table below, from the Globe and Mail story, summarizes the key data.

GENERATION GAP

Average annual earnings of university-degree holders, age 25-44, who are working full-time:

SOURCE: STATISTICS CANADA