Merit-Based Immigration Systems are Common Around the World

Legislative Update By: RJ Hauman

The White House-backed Senate bill that would replace our chain migration immigration system with a merit-based one sent critics and much of the media into a frenzy, even though the approach is common in many parts of the world. (Fox News, Aug. 3, 2017) Senators Tom Cotton (R-AR) and David Perdue’s (R-GA) Reforming American Immigration for Strong Economy (RAISE) Act, would replace the current U.S. legal immigration system largely based on extended family ties with a transparent and objective selection process that awards points based on individual skill. (RAISE Act Fact Sheet) This merit-based proposal resembles policies in Australia, Austria, Canada, Denmark, Germany, Hong Kong, Japan, New Zealand, South Korea, and the United Kingdom. (Fox News, Aug. 3, 2017) Despite the prevalence of merit-based systems around the world, critics inaccurately blasted the RAISE Act as racially motivated and outside the mainstream. (Id.) “Once again White Nationalists are pushing their ethnic cleansing agenda, scapegoating immigrants for their own inability to create a labor market that works for everyone,” Sulma Arias, an anti-borders advocate, said in a statement. (Id.)

Most merit-based systems (also referred to as points-based systems) award points for positive attributes, and aliens are required to reach a minimum score in order to be eligible to migrate. (See FAIR Merit-Based Immigration Systems Fact Sheet) Specific immigrants are then chosen based upon the needs of the receiving country. (Id.) Specifically, the RAISE Act would replace the current system with a skills-based points system, akin to the systems used by Canada and Australia. The system would prioritize those immigrants who are best positioned to succeed in the United States and expand the economy. (Id.) Applicants earn points based on education, English-language ability, high-paying job offers, age (meaning prime working age), record of extraordinary achievement, and entrepreneurial initiative. (Id.)

The advantage of merit-based immigration systems is that they allow the receiving country great flexibility in responding to shifting labor and economic needs. (See FAIR Merit-Based Immigration Systems Fact Sheet) Due to their language, education, age, and financial requirements, merit-based systems also encourage more efficient assimilation of migrants into the local and national community. (Id.) In a joint press release announcing their bill, Sens. Cotton and Perdue touched on these advantages. (Cotton-Perdue Press Release, Aug. 2, 2017) “Right now, our current immigration system does not meet the needs of our economy,” Perdue said. (Id.) “The RAISE Act will create a skills-based system that is more responsive to the needs of our economy and preserves the quality of jobs available to American workers.” (Id.)

Perhaps most importantly, merit-based immigration systems have brought impressive results for countries that have implemented them. (See FAIR Legislative Update, Apr. 18, 2017) Canadian government data shows that the labor participation rate for immigrants through the federal skilled worker program was 89%, and average salary was $40,000 in year one and $47,000 in year two. (Townhall, Mar. 11, 2017) For Australia, 68% of immigrants to Australia are skill based, while 31% are family based. The labor force participation rate of independent skilled immigrants is 96%, much higher than the 67% among native-born Australians. (Id.) Further, 85% of these immigrants are working full-time with a median earning of $79,000 AUD. (Id.) As Sen. Cotton noted in the press release, Canada and Australia’s experiences show that a country can reap great benefits from the right immigration policy. (Cotton-Perdue Press Release, Aug. 2, 2017) “For decades our immigration system has been completely divorced from the needs of our economy, and working Americans’ wages have suffered as a result. Our legislation will set things right,” said Cotton. (Id.) “We will build an immigration system that raises working wages, creates jobs, and gives every American a fair shot at creating wealth, whether your family came over on the Mayflower or just took the oath of citizenship.” (Id.)