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Trump said that immigrants change the fabric of a society's culture. Technically, they do. But so does the passage of time, new technology, social media, a native-born population, and much more. In reality, immigrants change culture for the better by introducing new ideas, expertise, customs, cuisines, and art.

Explanation:

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Answer:

Leandro Elia

Research Economist, Directorate General Joint Research Centre, European Commission

Migration policy is at the top of global political agenda. More than 1 million people have tried to cross the Mediterranean to reach Europe in the past two years. This has been largely caused by the displacement of people from war-torn countries such as Syria, Afghanistan, and also North Africa.

The European Union adopted the EU resettlement scheme in September 2015, which proposed the resettlement of 160,000 asylum-seekers from frontline EU member states over a two-year period from September 2015 to September 2017. Progress, however, has been slow. As of September 2016, the UNHCR reports that only 3% of the target has been reached.

Meanwhile new walls have been announced, or have been built. Some are real, such as the fence that Hungary intends to reinforce on its border with Serbia. There are also virtual barriers impeding migrants who want to cross from France to the UK, or from Italy to France through Ventimiglia.

The sentiment of fear and reluctance towards immigrants is increased because no one can convincingly predict the effect of a more diverse society on economic wellbeing.

Diversity and development

Stakeholders dispute whether cultural diversity creates economic costs or benefits. On one hand, a richer pool of expertise and experiences can create organisational synergies, leading to better outcomes for all. At a macro level, diverse societal norms, customs, and ethics can nurture technological innovation, the diffusion of new ideas, and so the production of a greater variety of goods and services (Ager and Brückner 2013, Ottaviano and Peri 2006). On the other hand, heterogeneous environments may produce coordination problems – for instance, when many languages are spoken – increasing transaction costs (Gören 2014, Easterly and Levine 1997). Racial fragmentation can also adversely affect social cohesion and interpersonal trust, and create irreconcilable divisions (Alesina and La Ferrara 2005, Montalvo and Reynal-Querol 2005, Esteban and Ray 2011).

In a recent paper, we explore how, and how much, immigration affects economic development through its effect on the cultural and ethnic composition of the destination country (Bove and Elia 2017). Most existing studies are cross-sectional, and explore the effect of ethnic and linguistic diversity on economic growth using time-invariant measures based on language and ethnicity (Alesina et al. 2003, Montalvo and Reynal-Querol 2005, Gören 2014). The racial and ethnic composition of modern societies have dramatically changed in the last few decades, however, as a consequence of mass migration. Between 1960 and 2000 the global migrant stock increased from 92 million to 165 million (Özden et al. 2011). By 2010 it reached 222 million (UNDESA 2016). Arguably the effect of cultural heterogeneity is likely to differ over time.

This is confirmed by Figure 1, which displays the percentage changes in birthplace diversity between 1960 and 2010, for all world countries. We used an almost-exhaustive dataset on international migration between 1960 and 2010, and computed diversity by identifying the nationality of the immigrants.1