Immigration issue in Singapore

PARK CHEOLSUNG — Wed, 23 Aug 2006 08:27:00 GMT

Singaporeans' reactions to the Prime Minister's call at the National Day Rally to open Singapore wider to foreign workers are well summed up by The Straits Times:

Foreigners welcome 'but take only those who can help S'pore' (22 August 2006). The newspaper observes:

Less self-assured Singaporeans have never been comfortable about the competition for jobs. The downright hostile ask whether newcomers - whether migrant settlers or sojourners on work passes - are not too 'foreign' for the society's texture and of questionable 'talent'. (Editorial, 22 August 2006)

For the past several years I have heard some Singaporeans' negative views on immigration with special interests, as a foreigner living in Singapore and as an economist. While I sympathize with their concerns, I doubt whether they are justified, at least in their opinion that foreigners take away Singaporeans' jobs. This is the classic argument against immigration, which is, unfortunately, often abused.

Whether immigrants take away native workers' jobs or not depends on the relationship between native workers and foreign workers. If they are substitutes from employers' point of view, native workers may lose jobs to immigrants or may get lower wages because of increased labor supply. Otherwise, there should be no competition between immigrants and natives. Furthermore, more immigrants can create jobs for native workers. Larger population means more business and more jobs.

Without data, it is difficult to tell whether immigrants have been substitutes for Singaporean workers. However, considering that immigration into Singapore is strictly regulated by the government and often adjusted by the needs of business in Singapore, I doubt that it has been the case.

What is economics? ... Answered by one of our own graduates

PARK CHEOLSUNG — Tue, 08 Aug 2006 07:48:00 GMT

Economics is not exclusively about money. Economics is a kind of paradigm - a type of looking-glass which allows us to gain a certain unique understanding of the world around us. Economics is about how agents (usually humans) react to incentives and how they decide on the most "appropriate" actions. Economics is about how we decide what to eat, where to go, what movie to watch, or more succintly, how to live.

- Jose Miguel M. Abito (ECONews, July 2006)

LABOUR ECONOMICS I : At random

Immigration issue in Singapore

What is economics? ... Answered by one of our own graduates