Take the Money and Run

Voluntary Return Programs

Gador Manzano Yolanda Vaccaro gadorm@iadb.org yvaccaro@yahoo.com

Countries are paying immigrants to

leave

• The Czech Republic, Japan, Spain, and UK are

paying immigrants to go back to their home

countries. Other countries are considering it

• Voluntary-return programs: an unexpected

repercussion of the international financial crisis in

develop countries

• Programs try to affect immigration outflow with

economic incentives

How does it work?

• In a nutshell: Gives economic incentives to

immigrants to return to country of origin in exchange

of giving up legal rights

• In some cases, countries leave the door open for the

immigrant to return when the economy improves, in

others the immigrant can never return

• Targets mostly legal immigrants

A Mismatch

• Driving force seems to be the economic/financial

crisis in host country…

…..but for immigrants pushing force seem to be

situation in country of origin

• If prospects are better in host country there is no

incentive to return

• For many immigration is a long-term decision that is

unlikely to be affected by a recession of limited

duration

Spain in Disarray

• Dramatic rise in immigrant population

• In 1999: 664,650 immigrant residents in Spain

• In 2009: 5,598,691

• In only a decade the number of immigrants has increased by 8.42%

• The immigrant population went from 1.7% to 12%

• The real number is higher than the official number

Source: National Statistic Institute.

Heading the EU

• In 2007, Spain became the country in the EU with the

highest immigration rate: 10%

• France: 9.6%

• Germany: 8.9%

• UK: 8.1%

• Moroccans, Rumanians and Ecuadorians are the

countries with more immigrants in Spain

Law trying to catch up with reality

• The first law dealing with the immigration phenomenon

dated from 1985

• In 2000 a new law was passed to cope with the growing

immigration

• But three changes have already been done to the 2000

law. The fourth change is currently been debated in the

Parliament

• Reality changes faster than the law can adapt, even if

the law is in permanent change

The Official Numbers

Spanish population 46.6 millions

Foreigners 5.6 millions (12% )

Number of unemployed 3,564,889

Number of foreigners unemployed 485,043

Foreigners unemployed from non EU 329,674

Immigrant unemployment 27.10%

General unemployment 15.20%

Source: National Statistic Institute

Where are the Immigrants from?

Region Total Population of Immigrants % of Immigrants EU 2,266,808 40.5%

Latin America 1,765,064 31.5%

Africa 998,024 (710,401 Moroccans) 17.8%

Asia 292,961 5.2%

Rest of Europe 221,004 3.9%

USA and Canada 51,921 0.9%

Others 2,909 0.1%

Source: National Statistic Institute

Why Immigrants Suffer from Higher

Unemployment?

• Work in sectors which have suffered the most from

the crisis (eg. construction)

• Temporary contracts

• Lack of networks

• The last ones to be hired

• Over-represented in jobs with low qualifications

We Need You, but Not Right Now

Thank You…and Bye for Now

Spanish Voluntary Return Program

• Approved in September 2008

• The program is not working according to plan

• In November 2008 140,000 eligible people

• On June 9, 2009 Only 5,088 have applied

Requirements

• Only for immigrants living legally in Spain

• Only for those working legally in Spain, and able to receive unemployment benefits.

• The immigrant must give up the permit of residence and also the work permit.

• Only for nationals of the following countries: Andorra, Argentina, Australia, Brazil, Canada, Chile, Colombia, Dominican Republic, Ecuador, Russia, The Philippines, Morocco, Mexico, Paraguay, Peru, Tunisia, Ukraine, Uruguay, U.S.A. and Venezuela .

Could they return to Spain?

• No sooner than 3 years after leaving

• Need a job offer or other reason to qualify to return

to Spain

• Need to start the process from the beginning

therefore back to square one

How Much Money are We Talking

About?

• Unemployment benefit, no more than € 1,000 ($1,400) for a maximum of two years

• A lump sum of 40% in Spain and then 60% in the home country

• Average payment: € 9,035

How is it Working?

• 5,088 applicants (as June 8, 2009)

• 3,977 immigrants have returned home

• Cost: € 21,200,000

• 91% of beneficiaries are Latin Americans

Top 7 Countries

Country Accepted Offer Total Population PercentagesEcuador 1,749 413,715 0.42%

Colombia 771 292,971 0.26%

Argentina 364 140,443 0.26%

Peru 334 137,154 0.24%

Brazil 215 124,737 0.17%

Uruguay 173 50,544 0.34%

Chile 166 46,068 0.36%

Source: National Statistic Institute & Ministry of Labor and Immigration

Where are the Africans?

• They are staying put

• African immigrants work mostly in construction. A sector badly hit by the crisis

• With the exception of Morocco, there are no social security bilateral agreements between African countries and Spain

• Most of the African immigrants arrive undocumented and have not managed to enter the labor market legally

What’s wrong?

The Targeted Population

• The program only targets legal immigrants

• More able to find a job

• More likely to be integrated in Spanish society

• More to lose if they go back

• (including legal residency)

• Only immigrants from 20 countries are eligible

What’s also Wrong?

The Non-Targeted Population

• Housekeepers are not eligible

• Bolivians are not eligible

• Around 300,000 Bolivians in Spain, 70% without papers

• Bolivians did not need a visa to enter Spain until a year ago, therefore the number of illegals is much higher than other nationals

How to Fix it?

• Tailor the program also for undocumented workers

and workers not eligible for social security benefits

• Allow legal workers to go back to their home country

without giving up their residency upfront

• Create a win – win situation. Worker goes back, but

maintains his rights for a period of time

THANK YOU