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Causes and Effects of Excessive Immigration Experiences and Lessons from the Recent Past, and Policy Options for the Future

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Causes and Effects of Excessive Immigration Experiences and Lessons from the Recent Past, and Policy Options for the Future JR_01_06 Aruba: Causes and effects of excessive immigration Experiences and lessons from the recent past, and policy options for the future Drs. Jorge R. Ridderstaat This paper reviews the demographic, economic, social, political, and cultural effects of the immigration process that resulted from the expansive growth of Aruba’s economy shortly after the closure of the Lago Refinery. It also provides some recommendations for future immigration policy. July 2002 The views expressed in this paper are those of the author and do not necessarily coincide with those of the Centrale Bank van Aruba. Contents 1. Introduction................................................................................................................................................................................................2 2. Migration: Some theoretical concepts .................................................................................................................................................6 2.1 Causes of migration..............................................................................................................................................................................6 2.2 Effects of migration.............................................................................................................................................................................7 3. Causes and effects of excessive immigration in Aruba ......................................................................................................................9 3.1 Adequate statistics................................................................................................................................................................................9 3.2 Factors causing migration influx in Aruba: Pull and push factors....................................................................................................9 3.2.1 Pull factors....................................................................................................................................................................................9 3.2.2 Push factors ................................................................................................................................................................................10 3.2.3 Networking and linkages............................................................................................................................................................12 3.2.4 Iron law of migration..................................................................................................................................................................13 3.3 Effects of migration...........................................................................................................................................................................13 3.3.1 Demographic effects..................................................................................................................................................................13 3.3.2 Economic effects.......................................................................................................................................................................17 3.3.3 Social effects..............................................................................................................................................................................19 3.3.4 Political effects..........................................................................................................................................................................21 3.3.5 Cultural effects...........................................................................................................................................................................22 4. Lessons .......................................................................................................................................................................................................24 4.1 Economic growth and supply of labor...............................................................................................................................................24 4.2 Migration flow out of proportion......................................................................................................................................................24 4.3 The iron law of migration...................................................................................................................................................................24 4.4 Persistency of foreign labor..............................................................................................................................................................24 5. Policy recommendations........................................................................................................................................................................25 5.1 Sustainable economic development ..................................................................................................................................................25 5.2 Immigration policy.............................................................................................................................................................................25 5.2.1 Immigration and labor market statistics...................................................................................................................................26 5.2.2 Labor immigration and the Aruban national interest...............................................................................................................26 5.2.3 A quota on foreign labor............................................................................................................................................................26 5.2.4 Foreign labor deposit and length of stay ..................................................................................................................................26 5.2.5 Integration of immigrants..........................................................................................................................................................27 5.2.6 Family reunions and citizenship................................................................................................................................................27 5.2.7 Control of undesired visitors ....................................................................................................................................................27 5.2.8 “Illegality does not pay in Aruba”..............................................................................................................................................28 5.2.9 Institutions working on immigration issues.............................................................................................................................28 Annex 1: Foreign-born population by age and period of most recent settlement in Aruba, 1990 – 2000 ................................29 Annex 2: L.A.R. notices of objection, 1998 – 2000................................................................................................................................29 Annex 3: Number of illegal persons caught and sent back to their countries of origin, 1993 – 1997.......................................29 Annex 4: Marital status of Arubans and non-Arubans, 1991 and 2000 .............................................................................................30 Annex 5: Labor force, employed population, unemployed population by sex and nationality, 1991 and 2000........................31 Annex 6: Gross monthly wage distribution between Arubans and Non-Arubans, 1994 and 1997..............................................31 References......................................................................................................................................................................................................32 1. Introduction The Lago Oil & Transport Company Limited (Lago), a refinery owned by the Exxon Corporation, was from the late 1920s the major source of income and employment for the Aruban economy. The economic prosperity that followed its establishment brought a huge shortage of labor, not only in the oil sector, but also in the trade and public sectors. The resulting import of labor initiated Aruba’s first period of mass immigration. Between 1927 and 1952, 27,949 persons migrated to Aruba, accounting for 63.5 percent of the population increase during that period. Initially, more Americans migrated to Aruba (usually on a contractual basis) primarily to work in the refinery. Subsequently, more and more persons, particularly from the Caribbean region, e.g., Anguilla, British Guyana, Jamaica, St. Kitts & Nevis, St. Vincent, Surinam, Trinidad & Tobago, migrated to Aruba to work on a contractual basis in the refinery. Others from St. Martin, Guadeloupe, and Martinique went to work in the construction sector and supply companies associated with the Lago. People from China, Portugal, and Lebanon also migrated to Aruba. The majority of the migrants established themselves close to the refinery in San Nicolas, while others lived in Oranjestad. When the Lago first started to layoff its employees in the early 1950s because of automatization and market adjustments, many of the migrants left Aruba. However, a significant
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