The impact of emigration on national development in the Arab region: the case of the Yemen Arab Republic

"The focus of this article is the impact of emigration on national development in labor sending countries experiencing wide-scale emigration, the main contention being that, due to the characteristics of contemporary labor movements among Arab countries, there obtains a contradiction between short term benefits and long term adverse effects. The article briefly defines development, then presents empirical evidence from the Yemen Arab Republic of the negative impact of labor emigration."     

EU Integration & Emigration Consequences: The Case of Lithuania

This paper analyses the causes, consequences, and policy implications of Lithuanian emigration following the country’s European Union (EU) accession in May 2004. After placing Lithuanian emigration in its historical context, the study assesses the recent dynamics, including the driving forces and characteristics of Lithuanian emigration at both the international and domestic level. The study finds that the primary determinants of this movement are both demand‐ and supply‐side factors. On the demand side, the labour shortages, decline in the working age population, and desire for cheaper labour in Western European countries function to attract Lithuanian labour. Concurrently, lower wages, higher unemployment, and the generally less developed economic conditions in Lithuania are encouraging Lithuanians to take advantage of the greater mobility that came with EU accession. The expanding networks linking migrants and potential migrants are facilitating this out‐migration, as well as the social mind‐set by which emigration is a perceived solution to socio‐economic difficulties. This study concludes that the consequences of this new emigration reality are mixed. The free movement of workers has helped to relieve pressure on the domestic labour market, drive down unemployment, place upward pressure on wages, and increase the remittances rate to Lithuania. However, concern is not ill‐founded; recent emigration has introduced labour market shortages, placed greater demographic pressure on the country, and increased the likelihood of brain drain. This study argues, therefore, that while Lithuanian emigration cannot and should not be stopped, Lithuania does have policy alternatives as a sending‐country that will help to mitigate the costs of emigration and maximize the benefits for the country’s long‐term development.     

An overview of present and future emigration dynamics in South Asia

The author presents preliminary findings on selected aspects of the dynamics which govern emigration from and within the South Asian region comprised of Bangladesh, India, Pakistan, and Sri Lanka. The paper attempts to identify some of the major reasons for observed migration flows and how the future may be envisaged especially in view of government programs, policies, and priorities. Contract labor migration is given special attention since it has become the predominant type of migration in the region. Sections consider a possible conceptual framework; measuring emigration pressure or potential; data and data problems; the volume of emigration since 1970; South Asian migrant workers; macro-level determinants of emigration; community, family, and individual factors; and sending country policies. The consequences of emigration are discussed in terms of the impacts upon the labor force and non-economic consequences. Observations for the future conclude the paper. Analysis of the dynamics of emigration from South Asia indicate an urgent need to improve data on various forms of emigration, that relevant officials in countries of origin have a longstanding concern about the exploitation of workers in sending as well as receiving countries, and the need to better understand the linkages between various factors relevant to the emigration process. An understanding of such linkages would allow for more realistic policies and planning for future emigration.     

Exporting labor: the impact of expatriate workers on the home country

The economic impact of emigration on the source country is analyzed through a literature review and a discussion of costs, benefits, and public policy implications. It is noted that "information collected from different sources and settings is needed for cross-validation of assessments and conclusions. Second....the cost/benefit analysis of emigration should be undertaken on a case by case basis. Third...these costs and benefits must be assessed in a long-term framework that considers the socio-economic conditions and the goals of the country....Fourth, effective governmental policies...need to recognize that emigrants generally are highly motivated people [who] are adept at overcoming legal or other obstacles in their path." (SUMMARY IN FRE AND SPA)     

The migratory impact of minimum wage legislation: Puerto Rico, 1970-1987

"This study examines the impact of minimum wage setting on labor migration. A multiple time series framework is applied to monthly data for Puerto Rico from 1970-1987. The results show that net emigration from Puerto Rico to the United States fell in response to significant changes in the manner in which minimum wage policy was conducted, particularly after 1974. The extent of commuter type labor migration between Puerto Rico and the United States is influenced by minimum wage policy, with potentially important consequences for human capital investment and long-term standards of living."     

Emigration dynamics from and within South Asia

This review of current knowledge about emigration dynamics from and within South Asia (Bangladesh, India, Pakistan, and Sri Lanka) opens with a brief history of the three phases of emigration from the area since the 1830s (plantation labor; postindependence to the UK, US, Canada, and Australia; and labor migration to the oil-exporting countries). The influence of the creation of Pakistan and Bangladesh is also covered as are British colonial and commonwealth policies. It is noted that migration data are incomplete and that India exhibits an ambivalence about collecting such information. The discussion then turns to emigration since 1970 and considers permanent migration from South Asia to the traditional receivers; South Asian asylum seekers in Europe; South Asian refugees, illegal migrants, migrant workers (flows and destinations), the stock of contract migrant workers (and their characteristics); returnee migrant workers; and skill levels. Analysis is provided of macro level determinants of emigrations such as gross national product (level and growth), the general demographic and social situation, labor force growth and structure, poverty and inequality, and internal and international migration. Environmental factors causing displacement in Southern Asia include floods, cyclones, river bank erosion, drought, and desertification. Global warming could displace millions of people in the region, and development projects have contributed to displacement. The remainder of the report covers political and ethnic factors, micro-factors influencing migration decision-making, the policies of sending and receiving countries, the consequences of emigration, and the potential for migration in the future.     

Migration and development: myths and reality

Recent research on the impact of labor migration on the socioeconomic development of developing countries has provided opportunity to try and resolve some of the long-standing polemics that have pervaded the literature on migration and development. This article focuses on findings concerning the labor, remittance, and social impacts of emigration on countries that have participated in labor emigration. While a great deal more research needs to be done, recent findings confirm that in some situations the sort-term impacts of labor migration on sending countries have been considerable.     

International migration in the Dominican Republic: implications for development planning

"The Dominican Republic represents a microcosm of all the major migration patterns: substantial emigration and immigration, sizeable return migration, and persistent internal rural-urban migration. The impacts of these various types of migration are related and have a significant influence on the development process. This study analyzes the causes of these migrations as well as the costs and benefits in terms of the individual migrants and the country as a whole. Finally, it investigates the implications of migration for development planning in the Dominican Republic." The authors conclude "that the migration issue is not an area distinct from the various development focuses, but rather cuts across and is related to many of the program areas in which the government is involved."     

The role of relationships in labor markets for the popular arts and its impact on product quality

While utilizing social networks is common in labor markets and may benefit both firms and laborers, social networks are argued to be unusually important in the popular arts. Prior work in economics on the role of relationships in labor markets has generally focused on the benefits and not the costs. This paper takes a different approach by focusing on both costs and benefits, by examining a specific market where relationships are particularly important. This paper argues that in addition to reducing diversity and creating inherent inequalities, excessive reliance on networks can lead to higher agency costs and lower product quality.     

Migrant workers: a passage from India to the Middle East. Demographic and social-psychological implications and policy consideration

The author first gives an overview of labor emigration from India since the nineteenth century, noting particularly the trends in Indian migration to Middle Eastern and North African countries. The demand for expatriate labor in West Asia for the years 1985-1990 is projected, and consideration is given to differential labor migration according to skill category. Focusing on Indian emigrants currently working in the Gulf States, the author discusses conceptual problems in examining international migration as well as the social-psychological consequences and the societal impact of migration.     

Emigration dynamics of eastern African countries

This examination of emigration dynamics focuses on 13 countries extending from Eritrea to Zimbabwe and Mozambique on the eastern African mainland and on 5 Indian Ocean island nations. The first part of the study looks at the temporal, spatial, and structural perspectives of emigration dynamics. Part 2 considers international migration in the region according to Appleyard's typology (permanent settlers, labor migration, refugees, and illegal migrants) with the additional category of return migration. Measurement issues in emigration dynamics are discussed in part 3, and the demographic/economic setting is the topic of part 4. The demographic factors emphasized include spatial distribution, population density, population structure, population dynamics, demographic transition, and the relationship between internal and international migration. Other major topics of this section of the study are the economic base, the human resource base, population and natural resources, the sociocultural context (emigration, chain migration, return migration, and migration linkages and networks), political factors (including human rights, minority rights and security, regional integration and economic cooperation, and the impact of structural adjustment programs), and a prediction of future emigration dynamics. It is concluded that refugee flows remain a major factor in eastern African countries but the development of human resources in the northern portion of the region indicates development of potential labor migration from this area. Data constraints have limited measurement of emigration in this region and may contribute to the seeming indifference of most eastern African countries to emigration policies. Emigration in this region has been triggered by deteriorating economic and political conditions and is expected to increase.     

Singapore's foreign workforce: some reflections on its benefits and costs

"This article provides some empirical information pertaining to the benefits and costs of foreign labor to Singapore and subjects to critical analysis some of Pang and Lim's hypotheses concerning the costs of labor importation presented in a previous article.... The article concludes with a discussion of the real cost to Malaysia of Singapore's labor importation policies and its potential for disruption of Malaysia's development plans."     

Inside the Sending State: The Politics of Mexican Emigration Control1

The social science of international migration has generally ignored labor emigration control policies. In the critical case of Mexico, however, the central government consistently tried to control the volume, duration, skills, and geographic origin of emigrants from 1900 to the early 1970s. A neopluralist approach to policy development and implementation shows that the failure of emigration control and the current abandonment of serious emigration restrictions are explained by a combination of external constraints, imposed by a highly asymmetrical interdependence with the United States, and internal constraints, imposed by actors within the balkanized Mexican state who recurrently undermined federal emigration policy through contradictory local practices.     

Effects of migration on social change in the country of origin

This paper analyzes the consequences of migration for European countries of origin with a view to suggesting policies to resolve the difficulties of achieving equilibrium in balance of payments, regional development, increasing employment, reducing unemployment and inflation, raising productivity, and increasing the gross national product. Migratory flows are generally organized to meet immediate needs and solve latent socioeconomic tensions. Initially, the benefits for the 2 sets of countries (origin and destination) are considerable. Countries of origin manage to solve major problems in the areas of employment, undertake social and political efforts, and achieve equilibrium in the balance of payments through receiving remittances, which also contribute to the economic development of the regions of departure. For their part, receiving countries have reduced the shortage of cheap labor, a fact which, especially during the post-war recovery period, was instrumental in the recovery of their economies and the increased creation of wealth. From the demographic standpoint, many people have been deserting rural areas and there has been an increase in the aging of the population, with the resulting socioeconomic consequences. Emigration has also spread to women (family reunification), which in turn has led to a steeper decline in birth rates and made economic and social projections more difficult to assess. Social consequences have become obvious, emigration flows have led to a change of values and thus created a veritable cultural breach and disruption of rural societies. From the standpoint of employment, expectations have also been thwarted; despite their enormous experience, returning workers do not possess a high level of vocational training. For countries of origin, migratory trends may have some beneficial demographic, social, and economic effects if returns are carefully planned, prepared, conducted, and supported. There should be a considerable strengthening of relations between countries, effective cooperation and solidarity, and a shouldering of joint responsibility so as to define the correct policies for harmonious and more balanced world economic development.     

Some thoughts on emigration from the Mediterranean basin

In addition to emphasizing that the kind of migration characteristic of the 1960s between Mediterranean and western European countries has serious implications for the former, this discussion explores the more questionable consequence of "lassez-faire" emigration for employment and development; proposes a method of analysis--the human resources approach--which facilitates insight into undesirable development, incipient or future bottlenecks, and how far they may be caused by outmigration or could be removed by the purposeful organization of return migration; and raises for examination various principles and instruments of emigration policy connecting international movements of human resources with development in general and employment policy and manpower planning in particular. Wherever migrant workers go abroad temporarily, which has been claimed to be the feature of Mediterranean western European migrations, they are not totally lost to their country of origin. They may be considered to remain part of the national labor force. Consequently, the human resources available for the country's development (hereafter termed the "national" labor force) comprise both the domestic population and the temporarily absent population. Migration streams may consist of seasonal (S), temporary (T), and permanent (P) workers according to the intentions of the migrants or their legal status. To obtain the effective numbers of S, T, and P migrants, it is necessary to weigh the figures of intending S, T, and P migrants with the actual emigration experience of each category. Applying hypothetical proportions to the known S (15%), T (80%), and P (5%) figures for Yugoslavia would give the following effective rates (as percentages of total outmigration: S = 13.5%; T = 49.25%; and P = 37.25%. In the case of Yugoslavia, which may be considered fairly representative, the temporarily absent workforce would be less than 2/3 of the annual outflow postulated. Thus, 1 in 3 migrants leaving Yugoslavia is irrelevant for manpower planning purposes. Net outmigration at seasonal peaks or throughout the year reduces the available labor supply directly. It also does so disproportionately, for it involves the most able bodied persons. To obtain positive effects, the contribution of migrants to the home country's economy would have to be larger than before migration. The question is what effect does foreign emigration have on the spatial, economic, and social modernization of the rural sector. Most Mediterranean countries are characterized by widely scattered settlements, many of which are unviable and costly to service. The economic organization of the rural sector may be affected through labor shortages inducing wage pressure and mechanization. The traditional social organization of the rural sector may receive jobs from outmigration that could speed up its replacement by modern structures.     

Emigration dynamics in Bangladesh

This study of emigration dynamics opens by noting that emigration is one of the most dynamic economic and social elements in Bangladesh. The history of emigration from Bangladesh is sketched, and the level and trend of emigration is described for various destinations (especially the UK, the Middle East and North Africa, and Japan) and in terms of the socioeconomic background of migrants, channels of migration, occupations, the potential level of emigration, and applications for US Visas. The next section of the report presents the economic and demographic setting in terms of the gross national and domestic products, quality of life, the size and distribution of the population, the labor force, literacy, unemployment and underemployment, urbanization, internal migration, poverty, and income distribution. The discussion then centers on the sociopolitical setting and such factors as unmet basic human needs, the demand for expatriate workers, and emigration policy. It is concluded that the desperate economic situation in Bangladesh has combined with the demand for expatriate workers and the development of institutions to facilitate emigration. The result is increasing interest in emigration, which is fueled by mass communication highlighting the differences between the quality of life in Bangladesh and abroad.     

Brain Drain Losses – A Case Study of Serbia

The focus of this paper is on an attempt to quantify economic losses due to ongoing and vast brain drain emigration from Serbia. We claim that socio‐economic losses in terms of implicit and explicit costs related to upbringing and education of emigrants as well as lost production are paramount. Therefore, the main argument is in line with pessimistic stances on migration and its effect on Serbian development. Massive emigration, especially of educated individuals, results in a great number of incalculable deficits for the country, which cannot be expressed and measured in monetary terms only. The authors argue that these are even more striking when viewed from a holistic perspective factoring in demographic, social, political, cultural and intellectual impacts. It is also shown how emigration of the highly educated greatly undermines local democracy and social cohesion in Serbia. Nevertheless, the authors also take note of contemporary transnational perspectives on migration and development and present possible policies aimed at exploiting advantages of human capital and social networks of migrants and diaspora, circular mobility and returns.     

Pensions and the uses of ignorance by unions and firms

Pensions are contingent claims contracts that are often fashioned by collective bargaining under conditions of asymmetric information and market power. Pensions are not an employer’s or a union’s optimal contract; they represent compromise. Employers use pensions to minimize labor costs and to adjust to market changes. Pensions help unions improve and protect their members’ work lives and help unions to survive as institutions. When workers’ estimations of their pensions differ from their employers’ estimations a moral hazard can exist. Less mobile workers and those with less influence subsidize the pension benefits of other workers or reduce an employer’s costs. Econometric results based on data from the President’s Commission on Pension Policy show that certain workers, namely women, overvalue their plans, which provides an opportunity to lower labor costs and redistribute benefits. Unions have a contradictory effect on information. The author thanks participants in the Cornell University Collective Bargaining workshop and the Harvard Labor Economics workshop. I especially thank James Medoff for his comments.     

Emigration dynamics in Pakistan

This study of emigration dynamics in Pakistan focuses on Pakistan's position as one of the world's leading manpower exporters. The study opens with a review of the history of international labor from the subcontinent. The second section looks at the problems with the collection of data on international migration and then considers the volume of international migration, migrant destinations, return migration, undocumented migration, and the stock of migrant workers abroad. The third section describes the economic and demographic context for overseas migration through a consideration of gross national product and the remittances of migrant workers, growth in gross domestic product, poverty and income distribution, the state of the population, labor force and employment, a profile of migrant workers, and the government's employment policy. The political and social context for overseas migration is the topic of the next section, and the discussion centers on emigration policy, institutional arrangements for manpower export and the welfare of migrants, and the economic resettlement of return migrants. Consideration of the future trends in international migration from Pakistan focuses on the cyclic nature of overseas labor migration, the existence of networks to facilitate such migration, uneven distribution of enabling resources in Pakistan, the paucity of available data, and governmental/cultural factors that promote and restrict such migration. It is concluded that both individual Pakistanis and the government consider overseas migration a positive force but that a reliance on such an ad hoc measure has costs that have not been considered by Pakistan's policy-makers.     

Emigration dynamics: the Indian context

This report on emigration dynamics in India opens by providing background on short- and long-distance migration to and from India in response to such events as the formation of Pakistan as well as to the policies of the British Empire and Commonwealth. Section 2 discusses India's demographic and sociocultural setting in terms of population growth, urbanization, patterns of internal migration, growth of the labor force, economic growth, poverty alleviation, health, and education. The third section describes the lack of data on international migration. Some data are available on emigrants, but the only information on return migration is that gleaned from surveys in Kerala. Section 4 considers emigration to industrialized countries and notes that it is almost exclusively permanent and largely composed of individuals with professional, technical, or managerial skills. The resulting brain drain is described as is the incidence of illegal migration. India does not create conditions from which citizens must seek asylum, rather the country has absorbed flows of refugees from Pakistan, Tibet, Bangladesh, Afghanistan, and Sri Lanka. Available data on the characteristics of emigrants and return migrants are reviewed in the next two sections, and section 7 looks at the data on financial flows gathered from macro-level estimates of remittances. Section 8 is devoted to the community, family, and individual factors which influence emigration including the networks that facilitate migration and means of meeting migration costs. The ninth section summarizes the political setting with an emphasis on the adverse reaction of Nepal to population movement from India. The final section of the report projects future population movements. It is noted that if there were no restrictions on migration, millions of Indians would emigrate to the Americas, Africa, and Australia. Whereas poverty, unemployment, and population growth will likely erode living conditions in India, the government has no policy to encourage emigration. Labor migration to the Gulf countries will likely continue.