Overseas workers' remittances in Asian development

In recent years, overseas workers from Asia have been sending remittances of about $8 billion annually to their home countries. These remittances are an important source of precious foreign exchange for the major labor-exporting countries. The overall development impact of remittances, however, has not been well established. Remittances are spent primarily on day-to-day consumption expenditures, housing, land purchase, and debt repayment. Although only a small proportion of remittances are directed into productive investments, this does not warrant the conclusion that the developmental value of remittances is negligible. In fact, remittances spent on domestic goods and services Asia provide an important stimulus to indigenous industries and to the economies of the labor supplying countries. It is these broader macroeconomic benefits of remittances which seem to have been largely ignored in the literature, and this perhaps explains the pessimistic view of the developmental value of remittances. Reservations concerning the effects of remittance on the sending countries include the fears that 1) expenditure patterns of remittance receiving households may create a demonstration effect whereby nonmigrant households may increase consumption, 2) remittance inflow will increase income and wealth inequalities, 3) remittance expenditures may result in inflation, 4) remittances may produce only short-term fluctuations in long-term economic development, and 5) remittances may adversely affect agricultural development.     

Enhancing the capabilities of emigration countries to protect men and women destined for low-skilled employment: the case of the Philippines

This study examined policies in receiving countries, evaluated their effectiveness in protecting low skilled Filipino migrant workers, and discusses the potential for quantifying and objectifying labor migrant gains or losses. Data were obtained from focus groups among 10 technical managers of the Philippine Overseas Employment Administration and interviews with 10 policy-makers in order to establish a hierarchy of aims in labor migration and policy indicators. The aims are identified as good jobs abroad, an orderly process, efficient and fair recruitment, and easy transfers of remittances. Findings are that Philippine policies facilitate remittance transfers. Government was least effective in ensuring orderliness. Government was fairly effective in ensuring fairness and efficiency and ensuring good jobs overseas. It succeeded the most in ensuring that nationals can easily transfer their earnings. Allocation data reveal that more resources were expended on searching for good jobs and least on fairness and efficiency. Remittances increased after mandatory remittances were ended as imposed by the Marcos regime. De-skilling often resulted from overseas employment, but rehired workers received better pay on their second and third assignments. This research was exploratory and more research is needed for developing sensitive indicators and refining the process of evaluating key government policies. The Philippine Development Policy that encourages labor migration and protection of overseas workers is a necessity during the ongoing Asian economic crisis.     

“Here One Moment… and Gone the Next?” Remittance as a Social Visibility Tool

Human labor is as much an export as any good. Remittances are a critical source of income for left‐behind families and communities. Transnational labor migrants often describe themselves as ‘invisible’: neither present in the lives of left‐behind families nor members of the receiving community. Building on social remittances literature, we argue that remittances serve as a remedy for this ‘invisibility.’ Through analysis of interviews with 26 temporary labor migrants from 11 countries resident in Israel, we find remittances can render migrants visible to transnational families and provide identity benefits to labor migrants. If visibility benefits decline because of familial role changes, reduced value as a remitter, cost exceeding benefits or because contracting partners change, remittance practices will change. Contrary to previous literature, our findings show that remittances decisions are dynamic, revealing why remittances practices change and even cease. Findings have implications for understanding the multibillion‐dollar remittances industry and immigrant incorporation.     

The new economics of labour migration and the role of remittances in the migration process

This analysis considers international migration remittances and their impact on development in migrant-sending areas. The new economics of labor migration (NELM) posit that remittances lessen production and market constraints faced by households in poor developing countries. The article states that remittances may be a positive factor in economic development, which should be nurtured by economic policies. The impact of remittances and migration on development varies across locales and is influenced by migrants' remittance behavior and by economic contexts. Criteria for measuring development gains may include assessments of income growth, inequity, and poverty alleviation. It is hard to gauge the level of remittances, especially when remittances may not flow through formal banking systems. The International Monetary Fund distinguishes between worker remittances sent home for over 1 year; employee compensation including the value of in-kind benefits for under 1 year; and the net worth of migrants who move between countries. This sum amounted to under $2 billion in 1970 and $70 billion in 1995. The cumulative sum of remittances, employee compensation, and transfers was almost $1 trillion, of which almost 66% was worker remittances, 25% was employee compensation, and almost 10% was transfers during 1980-95. Total world remittances surpass overseas development assistance. Remittances are unequally distributed across and between countries. Migration research does not adequately reveal the range and complexity of impacts. Push factors can limit options for use of remittances to stimulate development.     

Structural shifts in the employment of foreign workers in Austria

The full economic importance of immigration becomes clear only when one examines the concentration of immigrant workers in certain industries and occupations, and this is done in the case of Austria to show the degree of segmentation of the labor market between indigenous and foreign labor. In the course of the 1960s the employment of foreign labor gained importance in Austria. As a consequence, bilateral agreements with the major recruiting countries were made, e.g., with Spain in 1962 and 1969, with Turkey in 1964, and with Yugoslavia in 1966. The reason for the increasing demand for foreign labor was the short supply of indigenous labor due to increasing participation rates and strong economic growth. The demand-pull for foreign labor gained momentum with the onset of the economic boom in 1970, so that by the end of 1973 the number of foreign workers had doubled in comparison to 1970. The 226,800 foreign workers accounted for 8.7% of total employment. The 1974-75 recession and the weak economic development ever since resulted in a decreasing demand for labor. At the same time, the supply of indigenous labor increased as a consequence of a demographic effect and because of increasing participation rates of women. From 1981 to the present, foreign employment decreased again due to the unusually long period of economic stagnation. During 1983, 145,300 foreign workers were engaged, i.e., 5.3% of total employment. The structure for foreign employment now differs greatly from that in the 1960s. The share of women in foreign employment has increased steadily from some 20% in the early 1960s to 31% in 1973 and 40% in 1983 -- a value comparable to the Austrian female share in employment. The reduction of foreign employment since 1973 affected, above all, Yugoslav men. the share of Yugoslavs in foreign employment decreased from 196,300 or 79% in 1973 to 92,200 or 61.7% in 1983. With the duration of foreign employment rising, the disribution of foreign labor over economic branches increased. In the early 1960s the employment of foreign workers was concentrated in 3 branches -- the construction sector (32% of all foreign workers), metal industries (16%), and textile industries (10%). In 1982 only 1/3 of all foreign workers were still employed in these branches as an infiltration by foreign labor had taken place in all sectors. The services sector showed the greatest increase in foreign employment since 1975. There has never been as strong a concentration of 1 nationality in a particular economic branch as in Switzerland, Germany, or France. Case studies in Austria reveal that it was an explicit policy for firms (and also unions and entrepreneur representatives) not to depend on only 1 nationality of foreign workers. According to the case studies, about 1/3 of all foreign workers today occupy jobs which are in direct competition with indigenous labor. Another 1/3 fill jobs which are complementary to indigenous labor. For the remainder it is difficult to say to what extent they belong to one or the other segment of the labor market, because there is no information available on the occupational job structure.     

The desire for impact

This paper explores the meaning and implications of the desire by workers for impact. We find that this impact motive can make a firm in a competitive labor market face an upward-sloping supply curve of labor, lead workers with the same characteristics but at different firms to earn different wages, may alleviate the hold-up problem in firm-specific investment, can make it profitable for an employer to give workers autonomy in effort or task choice, and can propagate shocks to unemployment.     

Labor Migration,Remittances and Household Income: A Comparison between Filipino and Filipina Overseas Workers1

The major purpose of the research is to examine gender differences in patterns of labor market activity, economic behavior and economic outcomes among labor migrants. While focusing on Filipina and Filipino overseas workers, the article addresses the following questions: whether and to what extent earnings and remittances of overseas workers differ by gender; and whether and to what extent the gender of overseas workers differentially affects household income in the Philippines. Data for the analysis were obtained from the Survey of Households and Children of Overseas Workers (a representative sample of households drawn in 1999–2000 from four major “labor sending” areas in the Philippines). The analysis focuses on 1,128 households with overseas workers. The findings reveal that men and women are likely to take different jobs and to migrate to different destinations. The analysis also reveals that many more women were unemployed prior to migration and that the earnings of women are, on average, lower than those of men, even after controlling for variations in occupational distributions, country of destination, and sociodemographic attributes. Contrary to popular belief, men send more money back home than do women, even when taking into consideration earnings differentials between the genders. Further analysis demonstrates that income of households with men working overseas is significantly higher than income of households with women working overseas and that this difference can be fully attributed to the earnings disparities and to differences in amount of remittances sent home by overseas workers. The results suggest that gender inequal‐     

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.     

Barriers to migrant entry to occupations in Australia

In 1986, 21.3% of the population of Australia had been born overseas; currently, foreign born workers comprise 25% of the labor force. The level of skilled immigration has continued to increase throughout the 1980s. In the past, most English-speaking migrants gained recognition of their overseas qualifications, but about half of those from non-English speaking countries have never been able to return to their pre-migration occupations. Beginning with the medical field, occupational regulating gradually grew with state autonomy being a marked feature. Australia has 1 of the most highly regulated labor markets in the world, with hundreds of bodies to determine entry criteria. The Council of Overseas Professional Qualifications, established in 1969, guides selection and tests professionals both overseas and already resident in Australia. The Tradesmen's Rights Regulation Act recognizes acceptable tradesmen. Aside from these 2 bodies, the majority of qualifications are assessed at the state or local level. Problems skilled immigrants have encountered in attempting to gain recognition of their overseas qualifications include 1) preference for locally trained workers or discrimination against non-British/non-Australian qualifications; 2) lack of adequate information about assessment procedures; 3) inadequate use of interpreting and translating services; 4) language difficulties in tests; and 5) frequent assessment only on formal qualifications, with skills and experience not being evaluated. The 2 basic models for assessing occupational suitability are the valuation of qualifications approach and the valuation of skills approach. To illustrate the operation of various models of assessment, the author discusses these occupations: medicine, nursing, engineering, computing, and electrical trades. The major factors that are essential for an overall strategy of change include 1) less occupational regulation in the labor market; 2) national registration and licensing systems in the "life-threatening" or "critical" occupations; 3) optional certification systems preferably at the national level, in the noncritical occupations; 4) skills-based assessments; 5) mainstreaming of all assessment mechanisms into authorized accrediting and assessing agencies; and 6) flexible means of entry to occupations. The establishment of an appropriate mechanism and legislation for achieving this change is of paramount importance.     

Failure to return to industry,the primary feature of the sequence of Turkish migration

This article seeks to destroy the myth that the industrial experience of emigrated workers can be helpful in development efforts for the sending countries by supplying a highly qualified labor force. The extent and nature of unemployment in an underdeveloped country such as Turkey form the essential background. Insufficient demand for labor, oppressive living conditions for the unemployed, and the absence of hope for future improvement in employment conditions produce a high desire to work devoid of a specific job or career goals, tendencies which account for the willingness of workers to accept any kind of work as long as pay is adequate. Most Turkish migrant workers have been found to be oriented toward accumulating as much money as possible, not for use as a means of changing their structural situation or improving their employment qualifications, but as an end in itself. The hypothesis that polyannual migrants acquire new knowledge and ability to adapt to the mode of life of an industrial society, internalizing its structures, roles, and values, recieves little confirmation in the literature. A large proportion of Turkish migrants remain attached to preindustrial habits and preferences for work in a milieu that assures personal relationships. Few report in surveys that they learn significantly in their migrant jobs. Migrant workers who are only superficially familiar with industrial culture and who reject the mode of life of industrial society cannot be viewed as a force for change and innovation when they return. Migrant remittances are steadily increasing, but until the present, no structural changes have been made in Turkey to encourage their investment in productive enterprises. Personal or familial reasons, not desire to undertake new enterprises, are most often the cause of migrants' return; once they have done so, they aspire to new occupations in the tertiary sector rather than return to their earlier lines of employment.     

Occupational Destinations and Economic Mobility of Filipino Overseas Workers1

This study examines employment and occupational shifts experienced by Filipino overseas contract workers in the transition from country of origin to country of destination and examines the impact of labor migration on economic conditions and standard of living of the families left behind. Data for the analyses were obtained from a representative sample of 2,346 households drawn from four primary sending areas in the Philippines. The analyses focus on characteristics of the households and of the household members employed overseas. The findings reveal that a considerable number of overseas workers (both men and women) were unemployed prior to migration and that the overwhelming majority of these workers were recruited to fill low‐status (manual and service) occupations in the host country. The analysis demonstrates that the odds for Filipino overseas workers to be employed in low‐status occupations were extremely high, net of human capital characteristics, net of the occupations they held in the Philippines, and net of country of destination. Further analysis reveals that overseas employment is associated with a substantial increase in earnings (five‐fold for men and four‐fold for women). Comparison between households with and without overseas workers reveals that, net of household characteristics, the flows of income earned abroad are used to purchase household goods to improve standard of living. These findings provide firm support to expectations derived from the household theory of migration according to which labor migration is a strategy adopted by the household unit to allocate family resources rationally to increase the flows of income in order to raise the family standard of living.     

Migration, remittances and rural development: findings of a case study in the Indian Punjab

Rural household survey data in the Ludhiana district of the Indian Punjab was used to study the nature and role of remittances in rural development. Of the 1646 outmigrants from the area since 1961, the 949 women who migrated for marriage and children under 12 years old were excluded from the study. Nearly all husbands who outmigrated had sent remittances. Parents and grandparents were 2nd and 3rd most likely to remit, but their numbers were small. Education did not correlate with remittance. Distance and time since emigration did not affect remittance. The frequency and the size of remittances are discussed. Remittances to outmigrants were insignificant. The remittances from outmigrants seem to raise the incomes and the levels of living of rural households. The remittances serve the purpose of redistributing income from urban to rural areas. Remittances also widened the gap between rich and poor in the rural areas because the better-off groups were more likely to receive remittances than the poorer groups. Most of the money sent from outmigrants was spent on consumable goods, food and clothing. Only a small proportion was spent on productive investment. This was usually done by farming families who invested in land or farm necessities. It is concluded that remittances from outmigrants can have a positive effect on the rural economies. Investment opportunities for nonagricultural families must be provided.     

Cherishing the Goose with the Golden Eggs: Trends in Migrant Remittances from Europe to Morocco 1970–20041

In contrast to earlier predictions, migrant remittances from Europe to Morocco have shown an increasing trend over the past decades. Remittances constitute a vital and relatively stable source of foreign capital. The so‐called “euro effect” and concomitant money laundering can only explain part of the recent, extreme surge in remittances. The structural solidity of remittances is explained by the unforeseen persistence of migration to northwestern Europe; new labor migration toward southern Europe; and the durability of transnational and transgenerational links between migrants and stay‐behinds. The stable economic‐political environment and new “enlightened” policies toward migrants explain why Morocco has been relatively successful in channeling remittances through official channels.     

Effects of Workers' Remittances and its Volatility on Economic Growth in South Asia

This study investigates the effect of workers' remittances and its volatility on economic growth of five South Asian countries by employing long time series data from 1975 to 2009. Cointegration results confirm a significant positive long run relationship between remittances and economic growth in India, Bangladesh, Sri Lanka and Nepal, but a significant negative relationship in Pakistan. Conversely, the volatility of workers' remittances has a negative and significant effect on economic growth in Pakistan, Indian, Bangladesh and Sri Lanka, but a negative but insignificant impact in Nepal. All sensitivity analyses confirm that the results are robust. A less volatile inflow of workers' remittances is growth‐enhancing for all countries. It is suggested that policy makers should make policies to reduce the transaction cost to welcome remittances into the region. Furthermore, countries like Pakistan should make the policies to discourage voluntary unemployment.

Policy Implications

• This study show the positive effect of remittances on economic growth in India, Bangladesh, Sri‐Lanka and Nepal. These countries should create friendly policies to reduce the transaction cost to ensure the continuous inflows of workers' remittances.
• Results indicate a negative effect of remittances on economic growth in Pakistan. Remittances are considered an uninterrupted source of income, which may increase voluntary unemployment, leading to decreased economic growth. The government should make policies to discourage this voluntary unemployment.
• Policymakers should create effective systems to ensure this inflow comes through formal financial channels for better control.

     

The Banking Network as a Transmission Channel of Migrant Remittances: The Case of Greek and Italian Banks in Albania

The paper examines the role of the banking network of foreign banks, namely Greek and Italian banks, on the transfer of remittances of Albanian immigrants. Remittances through the official network that is formed mainly by the banking network, grew much higher in comparison to non-official network during the period 1994–2006. The paper finds that the growth of the amount of remittances conveyed through the official network as part of the total amount of remittances is related to the evolution of branches of Greek and Italian banks in Albania.

Return migration to Jamaica and its development potential

Return migration to Jamaica is associated closely with the existence and nature of the transnational linkages established between migrants and their home country, especially at the level of the household and family. Remittances invariably precede, accompany and follow the actual return of migrants and comprise money as well as a range of consumer goods.
Data on the number of returning migrants to Jamaica have been collected officially only since 1992; other information is derived from field studies. The figures show that the US is the source of most return migrants to Jamaica, with the United Kingdom second.
Likewise, there are few official statistics on remittances, especially of those entering the country through informal channels. Nevertheless, data on the receipt of money through the Bank of Jamaica, indicate that during the 1990s remittances as a percentage of GDP exceeded that of the traditional foreign currency earners of bauxite and sugar.
Growing awareness of the potential of the Jamaican overseas community has led the Government of Jamaica to establish programmes, including The Return of Talent programme, supported by the International Organization for Migration (IOM), to encourage the return of nationals.
Different types of return migrants have the potential to make different kinds of contributions to national development – some through their skills, educational and professional experience, others through the financial capital which they transfer for investment or as retirement income. However, the most significant development potential of return lies in the social and economic conditions in Jamaica itself. If confidence levels are high, there will be little difficulty in attracting persons to return and financial transfers and investments will increase. Furthermore, the social and economic environment largely conditions the extent to which skills and talent as well as the financial capital are effectively utilized.     

The return of international labour migrants in the ESCAP Region

The social phenomenon of massive temporary international labor migration from the ESCAP region has emerged extremely rapidly. Within 10 years, the number of persons from ESCAP countries grew from a negligible one to 3.5 million. Related research and government policies have lagged behind this latest surge in migration. Most research conducted has been small-scale and lacks an analytical or theoretical framework. Policy formulation for temporary labor migration is difficult because most of the rapid growth in the industry has occurred as a result of private efforts, with a minimum of government intervention. It is now difficult, for the government to provide effective regulations or measures to stimulate and assist the process. Regulations on compulsory remittances or overseas minimum wages have proved to be unrealistic and, if not rescinded, are routinely circumvented. The most effective policies to assist return migrants may not be those which are intended to do so, but those which control the earlier stages of the migration process, such as recruitment, working conditions, and banking arrangements. The most valuable policies may also include those affecting education, training, employment, and general socioeconomic growth. Governments are recommended to provide social services for migrants and their families who are experiencing problems, and to institute community programs in areas with a large number of labor migrants. Governmental efforts to promote forms of labor migration beneficial to the workers would be valuable and should include measures to identify overseas labor markets for employing its nationals, government ot government labor contracts, and government participation in joint-venture projects. International migration should be analyzed in the context of theories and social change in order for governments to formulate effective measures for the reintegration of returning workers. Labor migration on the current scale has many social implications for the sending countries; relationships between employers and employees, the government and private sectors, and white and blue collar workers are affected. Social change and technological innovation will become more rapid, women's status and family roles will change markedly, and behavior is likely to become less conformist and more individualistic.     

The impact of remittances from Canada's seasonal workers programme on Mexican farms

Based on a survey of participants in Canada's Seasonal Agricultural Workers Program, the authors’ three‐stage least squares estimation of a simultaneous equation model finds that migrants’ remittances enhance on‐farm investments in Mexico, which, in turn, increase farm income. Remittances are also found to have a positive influence on non‐farm income in Mexico, by giving respondents the possibility of starting a new business and diversifying their investments. These results support the hypothesis underlying the “new economics of labour migration” that remittances contribute to economic development by relaxing the credit constraint on the investment function of family farms.     

International Migration and the Role of Remittances in Eastern Europe

In this paper we analyse the effect of remittances on employment performance for Central and East European (CEE) economies. We show that the impact of remittances on unemployment depends on its effect on productivity growth and investment. In order to empirically analyse the impact of remittances we estimate a productivity equation using a set of 11 transition countries during the 1990 to 1999 period. Our results show support for the view that remittances have a positive impact on productivity and employment both directly and indirectly through its effect on investment.     

WORKING IN “HIGH-TECH”: RESEARCH ISSUES AND OPPORTUNITIES FOR THE INDUSTRIAL SOCIOLOGIST*

This article outlines some issues concerning the organization of work in the new “high technology” industries. High technology industries are defined as industries involved in the manufacture of electronic information processing machinery and related products. Two central tensions are key to understanding work in the new high technology industries. First, a limited reduction in the prevalance of repetitive tasks is counterbalanced by increasing isolation of workers due to semi-automated production processes. This tension may be mediated by intentional efforts on the part of unions and/or management to recreate meaningful work environments. Second, potential empowerment arising from the creation of new job related skills is frequently offset by continuing high unemployment in the broader labor market that is to some extent a result of the very success of high technology production tcchniques. Difficulties in realizing potential aspects of empowerment may be further amplified by large-scale utilization of female and minority labor in high technology industries in the West and Southwest. Research techniques of addressing these issues are also surveyed and evaluated.