High-skilled Immigration and Innovation

Europe is an ageing society where the share of the elderly (those sixty-five years and older) as a percentage of the working age population (twenty to sixty-four years) now stands at around 30 per cent, with Italy and Germany above and France below this average (Fargues, 2011, see also Chapter 5 in this volume). This implies a reduction in the total stock of population, in particular of the younger generation, and an increase in the elderly population. This last group holds most capital and conditions the production of goods and services toward their consumption demands. This change in the composition of the European population may have a dramatic effect on investment, growth, and innovation—all favoured by the young, who will live longer and are less risk-averse. Population ageing creates the demand for both temporary and permanent migrants as caregivers in the public and private sectors or in social services, according to the welfare system adopted by the country. But there is also a demand for permanent migrants because the total population is shrinking. Even if Europe is in need of foreign labour, there is much resentment among the native population, who are afraid that migrants reduce the number of jobs available to natives. They also fear that migrants are a burden on the welfare state and thus that they increase taxes; and that foreign nationals increase criminality. Research has found only a limited competitive role played by migrants, and a limited use of the welfare state on their part. But this resentment encourages restrictive immigration policies or very selective immigration policies, which are put forward by conservative political parties tapping into a resentment of immigrants. Progressive parties are in search of reasons to combat this restrictive drive.