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Policy Brief EU High-Skilled Migration Policy: a Market of Many Markets

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Policy Brief EU High-Skilled Migration Policy: a Market of Many Markets Policy brief July 2019 Corrado Fumagalli LUISS-Guido Carli, Email: [email protected] EU high-skilled migration policy: a market of many markets In a time of increasing rage against for talents. High skilled migration policy migrants, we are often told that European are, therefore, the object of this brief. ports are closed to migrants. Matteo Salvini, Italy’s interior minister, has Despite widespread narratives about called on the European Union to defend its “brain drain” and monodirectional South- borders against migrants arriving from North migration, high skilled migration Africa. Over the past few years, tough policies are not a prerogative of the migration policies have been central to Western world. electoral campaigns across Europe. “Migration,” as the refrain says, “makes you Now, advanced economies in the Western win/lose elections”. world intend their policies to attract the best and the brightest as measure For the majority of migrants, it is addressing foreign nationals with sought- increasingly hard to enter regularly EU for skills. Emerging economies (especially, countries. Meanwhile, once the status has China and India), which has been sending been regularized, there is also a long and countries for long time, encourage demanding process toward the acquisition incoming of highly qualified migrants in of the full array of political and social two ways. First, they incentivize the return rights. to the mainland (China, India). This line of policies is particularly appealing because it can draw upon large basins of highly This is the way a paper on migration would skilled workers, who can adapt with begin (and finish), if the object of analysis customs, norms and values more easily. were low-skilled and generally “poor” Second, alike their counterparts in the migrants. The picture radically changes Western world, emerging economies adopt if we turn our attention to “the best and policy measures that favor the arrival of the brightest”. foreigners with skills and knowledge (China, Singapore). Attracting talented and wealthy migrants has been a priority issue for many advanced industrial countries over the past Against this backdrop, this policy brief ten years or so. In the European Union, shall first provide an overview of major raising demand for high-skill occupations high skilled migration policy systems. In has pushed actors in the public and private section 3, it shall sketch the EU Blue Card sectors to engage in a growing global hunt System, as a supranational effort to 1 harmonize the admission of foreign highly assessed on the basis of characteristics skilled workers. Section 4 offers lessons deemed to facilitate quick labor market from member states. Overall, alike other integration, language skills, educational EU migration policy areas, high skilled attainment, work experience and, in many migration policy is fragmented with cases, the presence of a job offer in different and competing interests across shortage occupations functions as an EU member states. additional qualifier or a precondition for the application. In the paradigmatic regimes of this kind (Australia and Demand-driven vs supply-driven Canada), successful applicants are given There are two fundamental ways to attract the right of permanent residence upon highly skilled workers from abroad: entry into the country and are allowed to demand-driven policies; supply-driven come with their families with, it is policies. expected, a settlement intention. The first strategy is demand-driven: A points-based system is a way to apply that is, the employer has a need for a weighted criteria, and is not a guarantee worker with a particular skill who does of selecting or favoring the most not have a right to residence. The promising candidates. Sometimes, highly- employer, then, makes a request to the skilled migrants arriving without a job immigration authorities for a work and have hard time finding employment residence permit for the future worker. because employers do not recognize their Usually, authorities subject these requests qualifications. In other cases, the point- to certain conditions, such as qualification, system may lead to the creation of large wage, working conditions levels, and, in backlogs in the application process. For some cases, and labor-market test, which this reason, the threshold needs to set high ensures that no resident worker is enough so that the number of potential available to fill the job vacancy adequately. candidates is not too large. As table 2 Demand-driven ways to attract talents may shows, points-based system tend to give help to satisfy current needs, which also stronger consideration to prior means to moderate wage demands in the achievements, language ability and job shortage areas. By doing so, according to offers. the OECD, it may slow the salary adjustment process that would help generate a domestically developed supply EU Blue Card of workers in the shortage occupations. EU labour migration policy is composed of the policies of individual Member States. However, the EU Blue Card is one of The second policy strategy to attract the two policies (together with a scheme talents from abroad is supply-driven: targeting seasonal workers) that try to would-be migrants apply for a permit, harmonize the admission of foreign and the receiving country select their workers at the supranational level. candidacies on the basis of certain characteristics, age, educational EU Blue Card gives highly-qualified attainment, language proficiency and workers from outside the EU the right to occupation, for which points are live and work in an EU country, provided assigned. In this case, the population of they have higher professional eligible candidates is in principle very qualifications, such as a university degree large, so receiving countries tend to adopt (or five years of relevant professional numerical limits, and candidates are experience), and an employment contract 2 or a binding job offer with a high salary for entry under the Blue Card scheme. For compared to the average in the EU country example, upon graduating from a German where the job is. The scheme applies in 25 university, international students can stay of the 28 EU countries. in Germany for 18 months under the Blue Card system to search for employment. EU Blue Card holders can apply for an EU Moreover, advance approval from the long-term residence permit after five years Federal Employment Agency is not of uninterrupted stay in the EU, provided required for Blue Card applicants who are they have resided continuously in the EU students and academics. Additionally, like country where they applied (France) for other graduates from German universities, the last two years. graduates with Blue Cards can still avail themselves of the two-year fast track to a Some countries specify that the salary must settlement permit. be at least 1.5 higher than the average yearly income of full time workers, other Finland has a scheme very similar to the countries set the bar at 1.2. In Cyprus, EU Blue Card, which allows for a one-year Czech Republic, Estonia, Greece, Hungary, permit that can be extended no more than Lithuania, Poland, Slovenia, Spain and four years at a time. Slovenia, the EU Blue Card is conditional to a labour-market test. Fees also vary from Austria has the Red-White-Red Card one country to another, from Euro 60 in (RWRC). Its points-based system that Hungary to Euro 881 in the Netherlands, entitle highly-qualified talents in shortage with a mean of Euro 210,17 among all occupation, with a binding job offer, to fix- those countries that launched the scheme term settlement and employment by a in 2011. The validity of the EU Blue Card specific employer. Czech Republic has also varies from one country to another. adopted a Green Card system, which is primarily based on the needs of business undertakings. It is a long-term residence EU Blue Card in Context permit (3 years) with an option for further In 2012, Germany implemented the EU extension. Blue Card. EU Blue Card holders can apply for a permanent settlement permit after 33 In parallel to the EU Blue Card, Estonia has months (rather than the typical five years), two schemes that targets non-EU and that period is reduced to 21 months, if entrepreneurs. The Employment as a Top the migrant has sufficient command of the Specialist scheme entitles to a residence German language. Family members of Blue work permit for at least 12 months. To be Card holders can legally enter the country eligible, the company must have at least and seek employment. Euro 65000 of equity capital, which has been used for purchasing in the country To apply for a Blue Card, non-EU highly- and classing as fixed assets immovable qualified talents must have a university or property. Moreover, the sales revenue of college degree and a 1-year employment the company must be at least 200000 Euro contract with a German company that pays per year. Analogously, Estonia runs also a a salary of Euro 50800 (at least) or Euro scheme for start-uppers. In this case, 39624, for shortage occupations such as eligibility depends on the judgment of an engineers, qualified communications and expert committee. technology experts, medical doctors. In Germany, application of the Blue Card has Recently, France has inaugurated the so- been particularly generous, especially called Passeport Talent to attract highly- towards students and academics applying qualified individuals from outside the EU. 3 The program is all-encompassing. It Educated program. This scheme applies to includes high-skilled workers, individuals who obtained their master’s entrepreneurs who want to invest in degree or PhD from a Dutch university or a France, artists, , writers, intellectuals with a university that is included in the top-200 of renown international or national standing, any of the three university rankings of who come to France to work in fields such world universities (Times Higher as science, literature, arts, “intellectual”, Education, QS, or Shanghai Ranking).
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