Our work investigates the forces and dynamics that propel people to move – the drivers of migration – as well as the manifold aspects of the significant impact that migration has on development.
The OECD Development Centre is carrying out a three-year project, co-funded by the EU Thematic Programme on Migration and Asylum, on the interrelations between public policies, migration and development. The overall objective of the project is to enhance the capacity of partner countries to incorporate migration into the design and implementation of their development strategies, through a better understanding of the links between sectoral policies and migration. The project is based on ten country studies in Asia, Africa and Latin America.
In 2014, the OECD Development Centre initiated a 3.5-year project in collaboration with the ILO on assessing the economic contribution of labour migration in developing countries as countries of destination. The project aims to have a reliable and evidence-based understanding of the economic contribution of labour immigration in low and middle-income countries, covering: contribution to GDP and growth, impact on the labour market and impact on public finances and social services. The project is undertaken in 10 developing countries across Asia, Africa and Latin America.
Emigration, labour markets and development, Chapter 4, Tackling the Policy Challenges of Migration: Regulation, Integration, Development (2011)
by Jason Gagnon and David Khoudour-Castéras
Migration is a major factor in development and economic convergence. It can produce substantial consequent changes in labour markets at home and in social conditions, including wage levels, household welfare, food security, child welfare and the role of women as workers and carers. Migrants’ remittances can also have impacts on work, productivity and education. The level of remittances appears to be closely related to economic conditions in host countries. It is not only the households of migrants, male or female, that are affected: there are impacts on those not sending migrants. Migration seems to have a positive effect on income, production and spending on education. The relationship between “lost labour” and remittances is one that merits further study.
by Jason Gagnon
While the econometric literature on the impact of immigration on labour markets is well developed, there is a striking gap with regards to the impact of emigration on sending countries. Building on the established literature measuring the impact of immigration, this paper attempts to narrow that gap by investigating whether the short but intense emigration period from Honduras from 2001 to 2007 to the U.S. increased wages in Honduras. It notably exploits the variation of labour supply by skill group in the labour market in the years following Hurricane Mitch. Relying on individual cross-sectional data and an instrumental variable approach, the estimates show that a 10% increase in emigration from Honduras increased wages in Honduras by around 10%, an increase which is higher than previous findings in other countries – but diminishing over time. It also provides evidence on implications in terms of redistribution by gender, rural/urban households and private sector workers.
by Fleur Wouterse
This working paper uses an agricultural household model to explore the impact of potential immigration policy reforms on the welfare of rural households in Burkina Faso. Simulation results demonstrate that, in contrast to continental migration, increased intercontinental migration has strong positive household welfare effects. Similarly, an increase in the stay abroad of intercontinental migrants impacts positively on welfare. Findings lend support to the introduction of a Temporary Migration Programme (TMP) which, by lowering the cost involved, would enable poorer households to engage in intercontinental migration. The temporary nature of such a program ensures that ‚Dutch disease‛ effects are mitigated through eventual migrant return. Granting of legal status to migrants already abroad through a temporary work and residence permit is also recommended if the objective is to improve the welfare of migrant-sending households. Legalisation can be granted under the same TMP so that the eventual return of migrants would be encouraged.
by J. Edward Taylor and Mateusz Filipski
This working paper presents findings from an effort to evaluate the impacts of immigration policies on the welfare of migrants and their families in migrant-sending countries. It uses a disaggregated micro economy-wide modelling approach, designed to capture both the potentially positive and negative effects of migration and remittances in migrant-sending areas and the complex processes shaping these impacts. The model is used to explore the possible effects of destination-country immigration policies on rural welfare in Mexico and Nicaragua (US policies in the first case and US and Costa Rican policies in the second). The findings highlight the sensitivity of sending-country welfare to immigration policies, not only in the households that send migrants and receive remittances but other households with which they interact within the migrant-sending economy. Impacts vary between the two countries and across households, and they also depend upon the gender and skills of migrants. The paper concludes by discussing the importance of both destination and source country policies in shaping the impacts of international migration on rural welfare.