Select Committee on Economic Affairs Minutes of Evidence


Examination of Witnesses (Questions 180 - 189)

TUESDAY 23 OCTOBER 2007

Professor Christian Dustmann and Professor Ian Preston

  Q180  Chairman: Can I just press you a bit on that? You assumed something that was wrong, in other words that the other countries would allow them in. What basis did you have for making that assumption? Was that the policy of all the countries concerned at the time?

  Professor Dustmann: It was—that was what was basically understood. We published our report in November 2003 and enlargement was in May 2004, so lots of things happened in the last month before enlargement, with many countries retreating from previous commitments that they would give access to immigrants.

  Q181  Chairman: You have nearly answered my next question in the sense that it starts off clearly forecasting immigration as hazardous, and we were going to ask you what lessons you have learnt from what you have done up to now which would be helpful for the future, for example in Romania and Bulgaria. You have half answered that question already.

  Professor Dustmann: I can add to that. Lessons to be learnt are that our research stands today as it stood then and we did not do anything which in any way was not serious. There is a Sunday Times journalist who since then calls me every half year and wants me to comment on the new numbers. I can only advise him to look at our report where we basically say everything we could say, given the information we had at that point in time. For Romania and Bulgaria, if we had to do the same study again, we would probably be on much more robust ground because we now know in migration from the previous accession countries and Poland, Hungary and Czechi and Slovakia are not so dramatically different from Bulgaria and Romania, so we could predict these flows, and the policy of other EU countries was easier to predict than it was at that time. Therefore, it would be easier to do this now for Romania and Bulgaria than at that time for the new accession countries.

  Q182  Lord Layard: Have you got any general forecasts of any of these things?

  Professor Dustmann: Nobody asked us to do that, this is not something which we would do—it is not publishable in journals, so if somebody wanted to commission that we would probably do that because we think it is important, but otherwise we do not have the resources to do it.

  Q183  Lord Kingsdown: You posed that the low figure was somewhat affected by what I might call remigration, people going back home.

  Professor Dustmann: Absolutely.

  Q184  Lord Kingsdown: Is it too early to know what is going to be the trend figure for that over the next five years? Will it move to somehow bring your original forecast back to reality—we do not really know, do we?

  Professor Dustmann: I would think we are probably much closer on the reality of it in this period in 2014 than people suggest we are at this particular point in time because of it. Return migration is very difficult to assess. We have done an assessment on return migration of previous immigrant groups, looking at the labour force survey from 1992 to 2004. The probability that a white immigrant who is in the UK one year after in migration—probably a very large percentage go back within the first year—is still here five years later is 50%. So half of the white population settling in the UK are returning within five or six years, and considering only those who have been here one year after in immigration, so the total percentage of return migration is likely to be larger because within the first year many individuals do return. The reason we cannot assess the first year has to do with technicalities in the labour force survey. Ethnic minority immigrants have a much higher probability to remain in the country, so there the probability to still be here after five years is between 70% and 80% and for some ethnic groups there was hardly any return migration. Again, we have done a paper on that which I brought with me for your information.

  Q185  Chairman: Thank you very much.

  Professor Dustmann: We can do the same exercise for the accession countries.

  Chairman: I know a number of people have got to go and we have a couple more questions. Lord Layard has got one and then Lord Vallance has got one, so if we can have relatively short questions and short answers we will get them in before everybody disappears.

  Q186  Lord Layard: Do you expect the relatively high levels of immigration from the A8 and elsewhere to continue or is it possible that the current surge in recent years will reverse in the current years and what might cause that?

  Professor Dustmann: There is convergence between the accession countries and Western Europe and at the same time there is an economic upturn in continental Europe which draws a lot of additional immigrants. Many of the countries which closed their labour markets have by now opened their labour markets to the A8 accession countries and therefore I would think that the inflow is decreasing, possibly quite dramatically.

  Q187  Lord Vallance of Tummel: You will probably have had the opportunity to see the written evidence that the Government submitted to us last week; what is your assessment of that and to what extent do the Government's conclusions reflect the findings of the latest research?

  Professor Preston: As far as it comments on our report, it is largely accurate, it seems. I would not disagree with the way it summarises what is in the reports that we have discussed earlier.

  Q188  Lord Vallance of Tummel: You are happy with its conclusions.

  Professor Dustmann: It was on our work and it was on other work, so we may be not completely in accordance with some of the other work, but this would not be the forum to discuss that. As long as it refers to our work, we think the assessment of our work is correct and we would agree with the conclusions.

  Q189  Lord Vallance of Tummel: Feel free to discuss anything where you may differ with the rest of the report, do not feel inhibited.

  Professor Dustmann: There were particular things which were mentioned such as what is the contribution of immigrants—how much do they pay into the welfare system compared to what they take out. That is an accountancy exercise where different people may put different things on the left side and on the right side. For instance, immigrants bring education with them, the UK does not have to pay for that education. If you have a young worker who is 20 years old and has maybe a high school degree, that is quite expensive, so do you put that on the benefit side or not? That is why this type of exercise can always be looked at in different ways, let me just say that. It is very difficult to do and it is very difficult to assess these things.

  Lord Vallance of Tummel: You would not put much weight on it.

  Chairman: We have got the message and it is a very important message too, if I may say so, and a good message on which we perhaps ought to end this session. Can I say to you both, thank you very much indeed for coming and giving us evidence. I suspect a lot of the evidence that you have given and the written evidence will require us to read it very carefully because it is very valuable for our inquiry; we are particularly grateful to you for taking the trouble to come and talk to us in the way you have. Thank you very much indeed.






 
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