Immigration benefits may be squandered in Chile

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.