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Immigration benefits may be squandered in Chile

Monday, July 8, 2019

Subject

Economic and social impacts of immigration.

Significance

As forecasts for Chile’s GDP growth this year have slipped from close to 4% to at best 3% and immigration from Venezuela has surged, attention has turned to migrants’ economic contribution and whether Chile is taking maximum advantage of this new potential source of growth.

Impacts

  • Migration from Venezuela is unlikely to slow in the foreseeable future but it may do so from Haiti.
  • If highly qualified immigrants are confined to low-paid jobs, labour productivity will suffer.
  • Fear of competition for jobs from immigrants will be boosted by other trends such as automation.
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