Factors Relating to Immigrants’ Contributions to Economic Growth in a Country: A Literature Review ()
1. Introduction
Immigrants are individuals who move to a country other than their country of origin in order to live there on a temporary or permanent basis (United Nations, 2022) . According to the United Nations, an immigrant is defined as any individual who has established major social ties to another country, such as through a job or residency, whether they do so temporarily or permanently. This definition includes individuals who move to another country for work, study, family reunification, or other reasons and who may or may not intend to stay permanently. The term “immigrant” is often used interchangeably with terms such as “migrant,” “foreign-born,” and “non-native,” depending on the context and the specific definitions used by different countries and organizations. People immigrate for a variety of reasons, such as work, study, family reunification, political instability, persecution, war or to seek asylum or refuge (Jones, 2016) . Healthier people live longer, work harder, and learn more in school and contribute to economic growth (Qehaja et al., 2023) . Many immigrants struggle with issues like linguistic limitations, health and access to healthcare, cultural differences, and difficulties finding employment or housing in their new country (Tsai & Ghahari, 2023; Smith, 2019) . However, they can, if healthy, also make significant contributions to their host country’s economy and society through their skills, talents, and entrepreneurship.
The term “economic growth” describes an increase in a country’s output of commodities and services over time. The change in a nation’s or region’s gross domestic product (GDP) over a specific period serves as an indicator of economic growth (Investopedia, 2022; OECD, 2021; World Bank, 2022) . GDP is a common way to measure economic growth because it gives a complete picture of the economic output of a country or region. It includes the value of all goods and services (value added to an economy) produced within the country or region, including those produced by foreign-owned companies operating within its borders. While GDP is a useful measure of economic growth, it is important to note that it does not capture other important aspects of economic well-being, such as income inequality, social welfare, and environmental sustainability. There are also other ways to measure economic growth and well-being, such as the Human Development Index (HDI) or the Genuine Progress Indicator (GPI). Most people think that economic growth is a good thing because it can lead to higher living standards, more jobs, and more prosperity for a society. It can also hurt the environment and make people less equal (social inequality) (Jackson, 2017) , so it is important to think about how economic growth affects different groups of people. Immigrants have played a significant role in the growth and development of many countries’ economies. The National Academies of Sciences, Engineering, and Medicine paper claims that immigrants have had a positive impact on the US economy, contributing to job creation, entrepreneurship, and innovation (Migration Policy Institute, 2021; National Bureau of Economic Research, 2015) .
The report states, “Immigrants have been and continue to be an essential part of the U.S. economy and contribute to economic growth and innovation” (National Academies of Sciences, Engineering, and Medicine, 2016) . Immigrants have made a big difference, for instance, in Canada’s economic growth, especially when it comes to entrepreneurship and starting their own businesses. A report from the Conference Board of Canada claims that “immigrants are more likely to start their own businesses than the Canadian-born population, and their businesses tend to grow faster and create more jobs” (Conference Board of Canada, 2018) . In the United Kingdom, immigrants have also made important contributions to the economy. A report by the Migration Advisory Committee found that immigrants have a positive impact on the UK’s GDP and that “immigrants are more likely to start a business and less likely to claim benefits than the UK-born population” (Migration Advisory Committee, 2018) . Immigrants contribute to economic growth by increasing the labor force, encouraging entrepreneurship and innovation, spending money, and paying taxes (National Academies of Sciences, 2017; Kerr, 2018) . The increase in the labor force due to immigration can help fill labor shortages and meet the demand for low-skilled jobs. Immigrants are also more likely to start new businesses and create jobs than native-born citizens. A National Foundation for American Policy paper claims that immigrants founded 55% of the US’s billion-dollar startups. In addition, when immigrants buy goods and services, they contribute to consumer spending, which is a key driver of economic growth. Lastly, immigrants also pay taxes, which can increase government revenue and contribute to public goods and services.
The evidence of immigrants’ contributions to economic growth is overwhelming. The US Bureau of Labor Statistics reports that in 2020, the foreign-born labor force participation rate was 65.9%, compared to 61.5% for native-born individuals (U.S. Bureau of Labor Statistics, 2022) . As of 2020, the labor force participation rate among foreign-born individuals in Norway was around 75% (Statistics Norway, 2020) . As of September 2021, the foreign-born labor force participation rate in France was estimated to be around 60% to 70% (INSEE, 2021) , the foreign-born labor force participation rate in Germany was estimated to be around 70% to 80% (Destatis, 2021) , and in the third quarter of 2021 (July- September), the employed population consisted of approximately 5.9 million individuals, accounting for an estimated 18% who were foreign born (Fernandez- Reino & Rienzo, 2021) . Moreover, immigrants are more likely to hold advanced degrees and work in high-skilled occupations than native-born individuals (Gibson, 2018; Kochhar, Cilluffo, & Ruiz, 2018; U.S. Bureau of Labor Statistics, 2021, 2022) . Tesla, Intel, and WhatsApp are just a few examples of the many successful US businesses that people who came from other countries founded. A study by the National Academies of Sciences, Engineering, and Medicine (National Academies of Sciences, Engineering, and Medicine, 2017) found that immigrants help the economy grow, increase innovation and entrepreneurship, and have a positive effect on wages and job opportunities for people who were born in the country. However, immigrants also face challenges in contributing to the economy. Cultural and linguistic disparities can make it difficult for immigrants to find employment or start businesses. O’Brien et al. (2019) argue that discrimination and xenophobia can also make it hard for immigrants to get jobs and use other resources. Furthermore, limited access to education and training can also hinder their ability to fully contribute to the economy (Batalova & McHugh, 2010) . Their contributions to the job market, entrepreneurship, innovation, consumer spending, and tax revenue cannot be ignored (Kerr, 2018) . However, it is important to recognize and address the challenges that immigrants face in contributing fully to the economy. Fix and Passel (2013) say that policies that help immigrants integrate and remove barriers to education, training, and jobs can help immigrants contribute as much as they can to the economy (National Foundation for American Policy, 2018) .
2. Research Question
The research question is: What are the most important factors found in the literatures about immigrants that contribute to a country’s economic growth?
2.1. Aims
The aim of this paper is to examine and synthesize existing research on factors related to the contribution of immigrants to economic growth in a country. This research question seeks to find out what research has already been done on this topic and what key factors have been consistently seen or are often mentioned as being important. In addition, the aim is to gain a better understanding of how immigration can positively impact a country’s economy and what factors contribute to this outcome.
2.2. Methods
To conduct this literature review, a comprehensive search of scholarly databases such as Ebscohost, Cinahl, and Google Scholar supporting the statements made in the research questions was used. The keywords were “immigrants” and “economic growth,” and the use the mesh terms “immigrants AND economic growth,” “immigrants and factors of economic growth,” “immigrants and languages,” “social inequality,” and “immigrants AND/OR socio-economic challenges.” The search was then performed to include studies published between 2004 and 2023.
The literature search was divided into three stages: 1) titles, 2) abstracts, and 3) retrieval of full-text documents. Certain publications are disregarded since they didn’t provide adequate answers to the study queries. According to their papers, the author used different approaches, either qualitative or quantitative, to find out factors immigrants contributing to economic growth. In this paper, several approaches (Table 1) are used to gain a better understanding of the process by which immigrants contribute to economic growth and develop recommendations for policy and practice to support and enhance these contributions.
3. Results
Figure 1 shows the flow of the article selection process. The initial search protocol identified 17851 articles. Inspection by title and abstract eliminated 17,613 articles. Only articles written in English were included. This search yielded 238 articles and 3 books, of which the exclusion of 209, including 29 articles and 1 book in this study. 209 articles and 2 books were excluded as they did not meet the standards for inclusion, such as their relevance to our research question.
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Table 1. Approaches for understanding immigrants’ contribution to economic growth.
Source: The author.
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Figure 1. Flowchart of the article selection. Source: The author.
The research shows findings that answer the research question. The contributions of immigrants to economic growth in a host country have been the subject of much research and debate. Several studies have examined factors that influence immigrants’ ability to contribute to economic growth. The main findings are summarized as follows:
3.1. Internal Factors
Education and skills: Orrenius and Zavodny (2015) found that immigrants with more education and valuable skills are more likely to help the economy grow by filling skill gaps in industries with a high demand for those skills. In their article, they talk about how immigrant entrepreneurs help the economy, including how they help fill skill gaps and bring new ideas, or innovations, to industries like technology and engineering. It also shows how important education and skills are for immigrants who want to start their own businesses and help the economy grow. Orrenius and Zavodny (2015) conducted research that demonstrated a favorable association between immigrants possessing better education and important talents and their potential to contribute to economic growth. This finding was uncovered because of the findings of the research. Specifically, they observed that immigrants who possess an education and skills that are in high demand in industries tend to fill skill gaps and match the needs of such businesses. This is because immigrants possess knowledge and skills that are in high demand in industries. It is not only beneficial to the immigrants themselves, but it also contributes to the expansion of the economy by reducing labor shortages in essential sectors and promoting economic growth. Research has shown that highly skilled immigrants are more likely to start their own businesses and drive innovation, leading to increased economic growth (OECD, 2019a, 2019b, 2019c; Choudhury & Singh, 2019) .
Access to education and training: Immigrants who have access to education and training programs can learn new skills and improve their chances of getting good jobs that help the economy grow (National Academies of Sciences, Engineering, and Medicine, 2015) . Research has shown that when immigrants take part in education and training programs, they are more likely to get jobs and help the economy grow (Kassim, 2017) .
Language proficiency: immigrants who are proficient in the language of the host country have better chances of finding high-quality jobs and contributing to economic growth. Chiswick and Miller (2014a, 2014b) argue about how important being able to speak a language is for immigrants’ economic success, including their ability to find good jobs and help the economy grow. They look at how language helps with social and economic integration and show how important it is for immigrants to get language training and education. They argue about how language barriers hurt the economy by causing people to make less money and have less access to jobs. Studies have shown that how well an immigrant speaks the language of the country where they live is a good indicator of how well they will do at work. Immigrants who learn the language of the host country also earn more money and are more likely to participate in the labor force (Dustmann & Frattini, 2014; Johnson, 2018) .
Entrepreneurship: Immigrants who start their own businesses can contribute to economic growth by creating jobs, stimulating innovation, and driving competition in the marketplace. The article by Orrenius and Zavodny (2015) discusses the economic contributions of immigrant entrepreneurs, including their role in creating jobs, spurring, and stimulating innovation, and driving competition in the marketplace. It highlights the high rate of immigrant entrepreneurship and the benefits of immigrant-owned businesses for the U.S. economy. The article also presents the challenges faced by immigrant entrepreneurs, such as limited access to capital and business networks, and the importance of policies that support immigrant entrepreneurship. Immigrants are more likely to start their own businesses than native-born individuals, and immigrant-owned businesses have a significant impact on job creation and economic growth (Fairlie & Lofstrom, 2015) .
Legal status: Immigrants who have legal status and are authorized to work are more likely to contribute to economic growth by paying taxes and contributing to government revenue. The economic effects of undocumented immigrants in the United States, including their contributions to tax revenue, are covered by Passel and Cohn (2019a, 2019b) . They point out that annual state and municipal tax payments made by undocumented immigrants amount to billions of dollars, including sales and property taxes, and that they also contribute to Social Security and Medicare through payroll taxes. Unauthorized immigrants who are granted legal status and authorized to work, according to Passel and Cohn (2019a, 2019b) , would likely contribute even more to tax revenue and the economy. Unauthorized immigrants, who are often excluded from legal employment opportunities, may be less likely to contribute to economic growth (Passel & Cohn, 2019a, 2019b) .
Social networks: Immigrants who have established social networks in the host country may find it easier to find employment and access resources that can help them integrate into the labor market. Kasinitz et al. (2008) examine the experiences of children of immigrants in New York City, including their pathways into the labor market. It discusses the importance of social networks and community organizations in facilitating labor market integration for immigrant youth and their families. The book highlights the role of ethnic enclaves and community-based organizations in providing resources and support to immigrants, including job leads, training programs, and information about employment rights and opportunities in the workplace. For immigrants seeking jobs in Norway, social networks can be a valuable source of professional networking (Garcia et al., 2019) . According to Lee and Wang (2017) , social networks, in addition to social and professional integration, can contribute to the social integration of immigrants in Norway. Immigrants’ mental health and well-being in Norway can benefit from social networks (Nguyen, 2021) . Smith (2020) argues that social networks play an important role in the lives of immigrants in Norway. There is a difference between population groups and between urban and rural areas. The authors also discuss the challenges immigrants face when they don’t have social networks or support, such as having a hard time getting jobs and being treated unfairly or discriminated against in the labor market. On the employment market, discrimination against immigrants can limit their economic contributions, resulting in lower earnings and fewer opportunities for advancement. Research by Chiswick and Miller (2014a, 2014b) has shown that social networks play a significant role in immigrant employment outcomes and that immigrants with strong social networks are more likely to find employment and contribute to economic growth.
Age, family status, gender and health: Immigrants who are of working age and have families can contribute to economic growth by participating in the labor force and consuming goods and services. The article by Preston and McLanahan (2018) discusses how the parents of immigrant families help the economy by, for example, working or joining the labor force and buying goods and services. It notes that immigrant parents are more likely to work than their U.S.-born counterparts and that they contribute significantly to the U.S. economy through their labor and consumption. The article also highlights the challenges faced by immigrant families, such as limited access to affordable childcare and healthcare, and the importance of policies that support the economic well-being of immigrant families. The age of an immigrant upon arrival in the host country can have an impact on their employment outcomes, with younger immigrants being more likely to be employed (OECD, 2018a, 2018b) . Immigrants with families may also contribute to economic growth through increased consumer spending (Donato & Wakabayashi, 2004; Hill & Alba, 2018) . The article by Constant and Zimmermann (2014) examines how gender disparities in labor-market outcomes among refugees can have significant economic consequences. The authors point out that refugee women frequently face additional employment barriers due to discrimination, language barriers, and family responsibilities, which can limit their ability to contribute to the labor force and economic growth. The article by Kofman and Raghuram (2010) investigates gender differences in the experiences of skilled Indian migrants working in the UK IT sector. According to the authors, women face additional barriers to entry and advancement in the IT sector, such as discrimination, a lack of support networks, and the demands of family responsibilities. These obstacles may limit skilled women migrants’ economic contributions and have implications for gender equality in the labor market.
3.2. External Factors
Industry and sectoral demand: Immigrants can contribute to economic growth by filling gaps in industries and sectors where there is a high demand for labor (Borjas, 2015; Card, 2018; Hanson, 2020) . Borjas’s (2015) article looks at the link between immigration and globalization and talks about some of the most important economic issues related to immigration. Research indicates that immigrants are more likely to work in economic growth-driving industries such as healthcare, hospitality, and construction (OECD, 2018a, 2018b; Hanson, 2018; Kondratowicz & Novak, 2017; Migration Policy Institute, 2019; National Academies of Sciences, Engineering, and Medicine, 2018) . Immigrants also add to the diversity of the healthcare workforce by bringing valuable linguistic and cultural skills that can improve patient care and outcomes (Kondratowicz & Novak, 2017; Migration Policy Institute, 2019; Borjas, 2015; Card, 2018; Hanson, 2020) .
Cultural diversity and creativity: Immigrants can help the economy grow by bringing different cultures into the workforce and boosting creativity and new ideas. The article by Chiswick and Miller (2009) discusses the economic contributions of immigrants, including their role in filling labor shortages in industries and sectors that have a high demand for labor. The authors argue that immigrants often have skills and knowledge that are in demand in certain industries and that their ability to fill labor market gaps can stimulate economic development. The article also discusses the challenges faced by immigrants in transferring their human capital to a new country, such as language barriers and differences in education and training systems. The article highlights the potential economic benefits of immigrant labor and the importance of policies that facilitate the transferability of immigrants’ human capital. Research has shown that cultural diversity in the workplace can lead to increased innovation and productivity as well as better problem-solving and decision-making (OECD, 2019a, 2019b, 2019c; Jehn et al., 1999; McKinsey & Company, 2018; Nishii, 2013) .
Economic and political conditions: The economic and political conditions of the host country can also influence immigrants’ ability to contribute to economic growth. For example, a strong economy with low unemployment rates and high demand for labor may provide more opportunities for immigrants to find employment and contribute to economic growth. Massey (2013) , in his article, discusses various theories of international migration, including the role of economic and political conditions in the host country in influencing immigrants’ ability to contribute to economic growth. The author argues that economic conditions such as labor demand, wages, and job opportunities can attract or deter immigrants, while political conditions such as immigration policies and social attitudes toward immigrants can also affect their economic prospects. The article shows that immigrants may face barriers to economic integration, such as discrimination and limited access to education and training programs, which can limit their ability to contribute to economic growth. The article presents factors that shape immigrants’ economic contributions and the importance of policies that support their integration into the host country’s economy. Conversely, political instability may discourage immigration and limit immigrants’ ability to contribute to economic growth (OECD, 2019a, 2019b, 2019c; World Bank, 2011; Cortes & Tessada, 2017; Migration Policy Institute, 2014) .
4. Discussions
Based on the literature review, immigrants can make significant contributions to economic growth in a country. However, several factors play a role in their ability to do so. One of the most important factors is education and skills (Kassim, 2017; Orrenius & Zavodny, 2015) . Immigrants who have high levels of education and specialized skills are more likely to find employment in high-skill, high- wage jobs, which can drive economic growth. Healthy and highly skilled immigrants have the potential to drive innovation and contribute to economic growth by starting their own businesses (Choudhury & Singh, 2019; Tsai & Ghahari, 2023) . Many immigrants often possess specialized skills and knowledge that can be valuable assets to the economy, and being entrepreneurs provides them with an opportunity to apply those skills and create new jobs. Studies have shown that immigrant entrepreneurs are more likely to start businesses in high-growth sectors such as technology, healthcare, and finance, which may result in the creation of new products and services, job creation, and increased competition in these industries. Furthermore, immigrant entrepreneurs often have a wide range of connections and networks around the world, which can help them get into new markets and invest in new ways. Social networks, which include interactions with other immigrants and members of the local community, can provide immigrants with job possibilities, knowledge, and assistance, which can improve their economic integration and contributions to the economy. Immigrants with strong social networks, for example, may have access to job leads, referrals, and other resources that can aid in their job search and economic integration. The findings of several studies have found that immigrants are more likely than native-born people to launch their own enterprises or businesses and that these businesses can have a significant impact on job creation and economic growth (Fairlie & Lofstrom, 2015; Orrenius & Zavodny, 2015) . This tendency has been seen in several nations around the world (Ottaviano & Peri, 2012) . It’s crucial to remember that although starting and operating a business can present difficulties for immigrants, they also contribute to the general economic growth and development of their adoptive nations. Entrepreneurs from other countries frequently contribute to the local economies of their host countries by paying taxes and spending money locally. These draw attention to the potential economic gains from skilled immigration as well as the crucial role that immigrants may play in stimulating economic growth through innovation and entrepreneurship. The article by Choudhury and Singh (2019) presents fascinating observations about immigration’s possible economic benefits. The authors argue that skilled immigrants fill talent gaps in many areas and start new businesses that create jobs, innovation, and economic progress. According to the Annual Survey of Entrepreneurs, highly competent immigrants start more enterprises than US-born entrepreneurs. Patents, trademarks, and copyrights show that immigrant-led enterprises are more inventive and create more jobs than native-led ones. Skilled immigration can boost the economy; thus, authorities may need to reassess current immigration rules. Instead of reducing skilled worker visas, as some “my country first” proponents have urged, countries around the world might recruit and retain more brilliant people by offering greater incentives to establish and expand firms. The authors identify some potential problems and constraints with their analysis. Their sample is confined to organizations with paid employees, and their study does not consider business quality or immigrant entrepreneurs’ long-term success. They also warn against presuming that all immigrants are equally talented or motivated to establish enterprises or that all US-born entrepreneurs lack these attributes. Thus, while the article makes a strong argument for skilled immigration and entrepreneurship, it also calls for more research and nuanced policy debates. How can we combine the benefits of attracting and retaining qualified immigrants with concerns about native labor displacement, cultural integration, and national security? How can we make the entrepreneurial ecosystem open to everyone? These complicated issues deserve interdisciplinary and collaborative solutions, not simplistic slogans, or partisan posturing.
In the job market, immigrants often face challenges that are unique to them, such as discrimination, a lack of access to capital, and few opportunities to move up. Starting a business can provide a path to economic self-sufficiency and entrepreneurship for immigrants, as well as a means of creating jobs and contributing to the local economy (Orrenius & Zavodny, 2015) . Immigrant-owned businesses are more likely to hire other immigrants and members of ethnic and minority groups, providing opportunities for marginalized communities to participate in the labor market. Additionally, immigrant entrepreneurs often have strong ties to their home countries, which can help them access new markets and investment opportunities. However, it’s important to recognize that immigrant entrepreneurship is not a panacea for addressing all the challenges that immigrants face in the labor market. Starting a business can be difficult and risky, and many immigrant entrepreneurs face barriers such as language and cultural differences, a lack of access to credit, and navigating complex regulatory environments. Therefore, policies and programs that support immigrant entrepreneurs and address these challenges can be beneficial. This can include providing access to capital, technical assistance, and mentorship, as well as addressing structural barriers such as discrimination and a lack of access to markets. By supporting immigrants’ entrepreneurship, a more inclusive and vibrant economy can boost economic growth. Overall, highly skilled immigrant entrepreneurs have the potential to contribute significantly to economic growth and innovation (OECD, 2019a, 2019b, 2019c) . By providing support and resources, policies may help them overcome barriers and realize their potential to create value for the economy and society. Policies that support the education and training of immigrants can be effective in promoting their economic contributions.
Another important factor is language proficiency. Immigrants who are proficient in the language of the host country are more likely to find employment and contribute to economic growth. Learning the language of the host country is crucial for immigrants to fully integrate into their new society and participate in the labor force. Proficiency in the host country’s language allows immigrants to better understand their workplace environment, communicate with coworkers, and potentially access higher-paying jobs. In addition to improving employment outcomes, learning the host country’s language can also lead to greater social integration and a sense of belonging. It’s important to have a language mentor. This involves working with immigrants to improve their language proficiency for work purposes or assisting them to improve their language skills for personal reasons. It can facilitate the development of friendships and networks, which can provide immigrants with valuable support and resources. However, it’s important to acknowledge that language learning can be a challenging and time-consu- ming process, particularly for adults. Factors such as educational background, age, and exposure to the host country’s language can all impact an individual’s ability to learn the language. Access to language classes and resources may also vary depending on the country and region. Overall, language proficiency is an important factor in immigrant employment outcomes and social integration, and efforts to support language learning for immigrants can have significant benefits for both individuals and society (Dustmann & Frattini, 2014; Chiswick & Miller, 2014a, 2014b) . Policies that support language acquisition and language training for immigrants can therefore be important in enhancing their economic contributions.
Thus, policymakers should invest in language training programs for immigrants to help them integrate into the labor force and society. Immigrants who have legal status and are authorized to work are more likely to contribute to economic growth by paying taxes and contributing to government revenue (Passel & Cohn, 2019a, 2019b) . Legal immigrants can access a wider range of employment opportunities, which can lead to higher earnings and greater economic mobility. Furthermore, legal immigrants who are authorized to work can participate in the country’s economy, which can further contribute to government revenue. On the contrary, unauthorized immigrants may face significant barriers to legal employment, which can limit their economic contributions. Due to their undocumented status, unauthorized immigrants may be excluded from certain job opportunities or may be forced to work in low-wage industries with limited benefits and protections. They may also be more vulnerable to exploitation and wage theft. Furthermore, unauthorized immigrants may be hesitant to report labor violations or seek legal recourse due to fear of deportation, which can further perpetuate these barriers and exacerbate economic inequality. Hence, policies that provide a path to legal status for undocumented immigrants, such as a pathway to citizenship, can be beneficial for both immigrants and the economy. By providing legal protections and access to employment opportunities, we can help ensure that all individuals are able to contribute to economic growth and participate fully in society.
Age and family status are also important factors (Preston & McLanahan, 2018) . Younger immigrants and those with families may be more likely to participate in the labor force and contribute to economic growth through increased consumption of goods and services (OECD, 2018a, 2018b; Donato & Wakabayashi, 2004; Hill & Alba, 2018) . Policies that support family reunification and provide support for immigrant families and social networkscan be a good way to effectively promote their contributions to the economy. Social networks can play a significant role in immigrant employment outcomes, and immigrants with strong social networks are more likely to find employment and contribute to economic growth (Chiswick & Miller, 2014a, 2014b) . Social networks can provide a range of benefits for immigrants, including access to job opportunities, information about local labor markets, and connections to potential employers or customers. Additionally, social networks can provide and strengthen emotional and social support, which can be particularly important for immigrants who may be experiencing cultural or linguistic barriers. Social networks can be particularly important for immigrants who face challenges in the labor market, such as limited English proficiency or discrimination. Immigrants who can leverage their social networks to find employment may be able to overcome these barriers and achieve greater economic mobility (Kasinitz et al., 2008) . However, it’s important to recognize that not all immigrants have access to strong social networks. Immigrants who are unhealthy, isolated, or marginalized may face significant barriers to employment and social integration, which can limit their economic contributions and perpetuate inequality. Thereby, policies and programs that support social integration and provide opportunities for immigrants to build social networks can be beneficial. This can include language and cultural programs, community outreach and engagement, and mentorship or networking opportunities. By supporting social integration, we can help ensure that all immigrants can contribute to economic growth and participate fully in society.
Gender is another important factor that plays a role in how immigrants help a country’s economy grow. Research has shown that there are differences in how men and women do on the job market among immigrant groups (Constant & Zimmermann, 2014; Kofman & Raghuram, 2010) . These differences can have big effects on the economy. Immigrant women, for example, may have a harder time getting jobs because of discrimination based on gender and the need to take care of their families. This can make it harder for them to join the workforce and help the economy grow. Yet, immigrant men may be more likely to work in low-skill, low-paying jobs, which can also limit their economic contributions. But it’s important to remember that the role of gender in how immigrants contribute to economic growth can change depending on the situation. For example, the level of equality between men and women and the number of family-friendly policies and programs in the host country may affect how much immigrant women can work and help the economy grow.
Industry and sectoral demand are also important factors. Immigrants who fill gaps in industries and sectors where there is a high demand for labor can drive economic growth. Borjas (2015) , argues that immigration can have both positive and negative economic effects, depending on the circumstances. He claims that immigrants can help the economy grow by filling jobs when there aren’t enough people to do them, making workers more productive, and starting new businesses and jobs. But he also argues that immigration can lower wages for native-born workers in some industries and that the costs of giving social services and other public goods to immigrants can put a strain on government budgets. Borjas provides a critical look at how immigration affects the economy, showing how complicated and multifaceted this issue is. In his essay, he offers insights into some of the most important issues, debates, and controversies surrounding immigration policy in the United States and other countries. Immigrants are more likely to work in industries such as healthcare, hospitality, and construction, which are important drivers of economic growth (OECD, 2018a, 2018b; Borjas, 2015; Hanson, 2018) . In the healthcare industry, immigrants play a critical role in meeting the growing demand for healthcare services, particularly in fields such as nursing and home healthcare. Immigrants contribute to the improvement of patient care (Kondratowicz & Novak, 2017; Migration Policy Institute, 2019; Borjas, 2015; Card, 2018; Hanson, 2020) . In the hospitality industry, immigrants often work in low-wage jobs such as food service and housekeeping, but these jobs are critical to the success of the industry and to the overall economy. Furthermore, the hospitality industry provides important entry- level job opportunities for immigrants and can serve as a steppingstone to higher-wage positions. In the construction industry, immigrants often work in physically demanding and low-wage jobs such as roofing, landscaping, and carpentry. However, these jobs are important for building and maintaining infrastructure and contribute to economic growth through construction activity and related industries such as real estate and architecture (National Academies of Sciences, Engineering, and Medicine, 2018) . It’s important to recognize that immigrants often face unique challenges in these industries, including limited access to benefits and protections, discrimination, and limited opportunities for upward mobility. Therefore, policies and programs that support immigrant workers in these industries, such as providing access to training and education, improving work- place protections and conditions, and addressing discrimination, can be beneficial for both immigrants and the economy. Supporting immigrant workers in these critical industries, may ensure that they are able to fully contribute to economic growth and achieve greater economic mobility. Therefore, policies that support the recruitment and integration of immigrants into these industries and sectors can be effective in promoting their economic contributions.
Cultural diversity and creativity are also important factors. Immigrants who bring diversity to the workforce can stimulate innovation and creativity, which can drive economic growth (Chiswick & Miller, 2009) . A diverse workforce brings a range of different perspectives, experiences, and skills to the table, which can lead to more creative and innovative solutions (OECD, 2019a, 2019b, 2019c; Jehn et al., 1999; McKinsey & Company, 2018; Nishii, 2013) . When individuals from different cultural backgrounds work together, they are more likely to challenge assumptions, question the status quo, and bring new ideas and approaches to the table. Additionally, a diverse workforce can improve productivity by encouraging collaboration, communication, and teamwork. When individuals from different cultural backgrounds work together effectively, they can combine their strengths and expertise to achieve shared goals and objectives. Furthermore, a diverse workforce can be better equipped to understand and serve diverse customer bases, which can be particularly important in global markets or in industries that serve diverse communities. However, it’s important to recognize that simply having a diverse workforce is not enough to reap these benefits. Organizations must also be committed to creating an inclusive and supportive work environment that values and respects all individuals, regardless of their cultural background. This includes providing opportunities for training and development, addressing unconscious biases, and fostering open communication and collaboration. In conclusion, cultural diversity in the workplace can bring a range of benefits, including increased innovation and productivity, better problem-solving and decision-making, and improved customer service. By embracing and valuing cultural diversity, organizations can create a more dynamic, inclusive, and successful workplace. Policies that support diversity and inclusion in the workforce can be effective inattracting and retaining top immigrants with talent, driving innovation and creativity, and ultimately achieving greater success.
Massey (2013) argues that economic and political conditions can also affect how much immigrants can boost economic growth. A strong economy with low unemployment rates and high demand for labor may provide more opportunities for immigrants to find employment and contribute to economic growth (OECD, 2019a, 2019b, 2019c; World Bank, 2011; Cortes & Tessada, 2017) . A strong, stable economy with low unemployment and a high need for workers can make it easier for immigrants to find jobs and help the economy grow. Immigrants can help fill gaps in the labor market, particularly in industries where there are labor shortages or where there is high demand for specific skills or expertise. Nonetheless, political instability, economic crises, or high levels of unemployment in the host country can discourage immigration and limit immigrants’ ability to contribute to economic growth. In these situations, immigrants may struggle to find employment and may be more likely to experience poverty, social exclusion, and discrimination. Furthermore, political factors such as immigration policies and attitudes towards immigrants can also influence immigrants’ ability to contribute to economic growth. Policies that restrict immigration or limit the rights of immigrants, such as denying them access to education or healthcare, can hinder their ability to participate fully in the economy and contribute to growth. The economic and political conditions of the country where immigrants live play a big role in how much they can help the economy grow. Creating a favorable economic and political environment that encourages immigration and provides opportunities for immigrants to fully participate in the economy, can leverage the talents and skills of immigrants to drive growth and prosperity for everyone. However, political instability may discourage immigration and limit immigrants’ ability to contribute to economic growth (OECD, 2019a, 2019b, 2019c; World Bank, 2011; Cortes & Tessada, 2017; Migration Policy Institute, 2014) .
5. Conclusion
This research suggests that the contributions of immigrants to economic growth in a host country depend on several factors, such as health and access to health, age and family status, industry and sectoral demand, cultural diversity and creativity, and economic and political conditions. It includes education and skills, being able to speak a language, having a language mentor, being able to start a business, having legal status, being able to get education and training, and having social networks. It is critical to consider the role of gender in immigrants’ contributions to economic growth to develop policies and programs that promote gender equality and support immigrant women’s and men’s full labor- force participation. Access to capital and business support services are two policies that should be implemented to encourage immigrant entrepreneurs. To reduce these barriers, anti-discrimination laws, fast and quick recognition of foreign credentials, and targeted employment programs should be implemented. Community events, and support for cultural organizations should be implemented as policies to promote social integration. Policies that entail a more inclusive society also contribute to economic growth. By influencing the circumstances under which immigrants can enter and engage in the economy, immigration policy can influence the economic contributions that they make. Policies that support immigrants’ inclusion and integration can help them maximize their economic contributions, whereas policies that restrict their access to social services, work opportunities, or education can harm their ability to succeed economically. Immigrants are vital and valuable assets to the economy. They strongly contribute to the human capital development of receiving countries.