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1. Economic Integration of Venezuelan Immigrants in Colombia: A Policy Roadmap

Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper studies the formal labor market integration and firm creation of Venezuelan immigrants and refugees in Colombia between late 2019 to late 2021. It applies a novel framework to identify segments of the Colombian economy where Venezuelan immigrants and refugees are lagging behind. When it comes to labor market dynamics, we identify professional services as one of the sectors where Venezuelan workers are not integrating fast enough consistently across different parts of the country, hinting that the recognition of professional credentials might be an important bottleneck to effective integration. As for entrepreneurship, we find that sectors where there are fewer firm creations by foreigners as compared to locals include commerce and service industries all across the nation. This paper is accompanied by a set of downloadable files which list sectors of the economy in each geographic department with poor integration of Venezuelan immigrants both for labor markets and firm creation. These lists are meant to be used by national and local policymakers for further investigation of possible market failures or distortions hindering immigrant integration, given our results.
Topic:
Economics, Labor Issues, Immigration, and Economic Integration
Political Geography:
Colombia, South America, and Venezuela

2. Pathways for Labor Migration from Northern Central America: Five Difficult but Necessary Proposals

Author:
Michael A. Clemens
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Very few labor-based pathways for regular migration are available for people in Northern Central America, often called the “Northern Triangle” of Guatemala, Honduras, and El Salvador. This paper briefly summarizes the state of labor-based migration channels in the region. It then argues that extending those channels is a necessary complement to asylum reform even for the goal of humanitarian protection. It concludes by arguing that five recommendations for long-term reform, though difficult, are needed to unleash the maximum shared benefit of these pathways.
Topic:
Migration, Labor Issues, Asylum, and Immigration Policy
Political Geography:
Central America, North America, Honduras, Guatemala, and El Salvador

3. Why and How Development Agencies Facilitate Labor Migration

Author:
Helen Dempster and Beza Tesfaye
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Development agencies in high-income countries spend a large amount of both official development assistance (ODA) and other forms of financing on migration programming. While most of this spending is aimed at deterring migration, increasingly more is being focused on facilitating migration: to the high-income country itself; within and between low- and middle-income countries; and supporting people on the move and the diaspora. This paper, written by the Center for Global Development and Mercy Corps, aims to explore why and how development agencies in high-income countries facilitate labor, or economic, migration, and how they have been able to justify and expand their mandate in this area. Based on interviews with nine development agencies, we find that development agencies use a range of arguments to justify their work in this area, including supporting economic development and poverty reduction in partner countries while also meeting labor market demands at home or other countries. Yet expanding a mandate in this area requires substantial cross-government coordination and political buy-in, both of which are difficult to achieve. It also requires the ability to be able to use ODA to facilitate labor migration, which is currently up for debate. As development agencies seek to expand their work on labor migration, it will be necessary to define shared goals and start with pilot projects that focus on low-hanging fruit, while maintaining a focus on development and poverty reduction.
Topic:
Development, Migration, Diaspora, and Labor Issues
Political Geography:
Global Focus

4. COVID-19, Long-Term Care, and Migration in Asia

Author:
Azusa Sato and Helen Dempster
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Countries throughout Asia are experiencing rapidly aging populations and increasing life expectancy, leading to a large and growing demand for long-term care (LTC) services. Despite the shift to providing care within communities and at home, governments are struggling to provide enough LTC to meet demand. A large part of the constraint is the lack of available workers. While many countries in the region have migration schemes to bring in LTC workers, they are insufficient. At the same time, the COVID-19 pandemic has had an outsized impact on older people throughout the region, and has exposed deficiencies in the structure of migrant care labor. This report explores the impact of these three dynamics—LTC, migration, and COVID-19—on the current and future LTC workforce in the Asian region. It showcases 11 countries of origin and destination, including the demand for and supply of LTC, how it is financed and resourced, and where and how migrant workers are sourced. It puts forward recommendations for how governments throughout Asia can ethically and sustainably increase LTC worker migration; improve wages, working conditions, and recruitment processes within the sector; and learn lessons from COVID-19.
Topic:
Migration, Labor Issues, Pandemic, and COVID-19
Political Geography:
Asia

5. A Pacific Skills Visa: Improving Opportunities for Skilled Migration Throughout the Pacific Region

Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The demand for skills exceeds supply, both within the Pacific Islands and the high-income countries of the Pacific Rim. Enhancing skilled migration therefore has the potential to generate large economic gains. The Global Skill Partnership is a migration model that can support such mutually beneficial mobility by moving training into the country of origin. In this paper, we outline its regional application to the Pacific. To assess the potential economic gains from such a Pacific Skills Partnership, we present new data on earnings and the cost of training in the Pacific Islands for three qualifications—accountants, computer science graduates, and chefs—and explore how such training could be financed through loan schemes. Graduates could be provided with internationally accredited qualifications and a new Pacific Skills Visa, facilitating their access to work opportunities abroad, particularly in the regions’ high-income countries. This Pacific Skills Partnership could bring large economic benefits to countries of origin, destination, and the migrants themselves.
Topic:
Economics, Migration, Labor Issues, and Migrant Workers
Political Geography:
Asia-Pacific

6. Expanding Legal Migration Pathways from Nigeria to Europe: From Brain Drain to Brain Gain

Author:
Samik Adhikari, Michael Clemens, Helen Dempster, and Nkechi Linda Ekeator
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The youth population within Nigeria is rapidly increasing, but despite their high levels of education and skills, many are struggling to find meaningful work opportunities at home. At the same time, Europe’s working-age population is declining, resulting in employers in these countries facing large and persistent skill shortages within a range of mid-skill professions. Despite the large benefits that facilitating migration between Nigeria and Europe could bring, and despite the overtures of both European governments and the European Union, few mutually beneficial migration partnerships exist. This report, a joint production between the World Bank and the Center for Global Development (CGD), outlines how the Global Skill Partnership model could be used to meet needs on both sides. It explores the growing youth unemployment rate in Nigeria, the increasing emigration pressure, and the structures that have been set up to manage this movement. It also explores the large skill shortages persistent within Europe, its migration management relationship with Africa, and the potential positive impacts of opening new legal migration pathways. It creates a framework with which to explore potential sectors and partner countries for the implementation of the Global Skill Partnership model, providing practical steps that governments can follow. And finally, it applies this framework to three sectors and partner countries: a health care partnership between Nigeria and the UK, a construction partnership between Nigeria and Germany, and an information and communications technology (ICT) partnership with various European states.
Topic:
International Cooperation, Labor Issues, Intellectual History, Immigration Policy, and Migrants
Political Geography:
Africa, Europe, and Nigeria

7. Unpacking Gender Gaps and Data Gaps in Public Sector Employment and Pay

Author:
Ugonma Nwankwo, Megan O'Donnell, and Charles Kenny
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
We look at available sources to ask (i) Where is data available on employment and wages allowing for comparisons between women and men, and the public and private sectors? (ii) How do women’s employment, compensation, and seniority compare with men’s in the public and private sectors? (iii) How do gender gaps vary by countries’ income level, education levels, and other factors? What are the policy implications of the data we analyze? (iv) Which countries’ efforts can be modeled by others, and how else can global gender gaps in employment and compensation be narrowed? We suggest the Open Government Partnership as a promising platform through which governments can commit to increased transparency around disaggregated employment and wage data, in turn improving policy decision-making aimed at closing gender gaps (or those rooted in other forms of inequality and discrimination).
Topic:
Labor Issues, Women, Inequality, Feminism, Data, and Gender
Political Geography:
Global Focus

8. Gender Gaps in Education: The Long View

Author:
David Evans, Maryam Akmal, and Pamela Jakiela
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Many countries remain far from achieving gender equality in the classroom. Using data from 126 countries between 1960 and 2010, we document four facts. First, women are more educated today than fifty years ago in every country in the world. Second, they remain less educated than men in the vast majority of countries. Third, in many countries with low levels of education for both men and women in 1960, gender gaps widened as more boys went to school, then narrowed as girls enrolled; thus, gender gaps got worse before they got better. Fourth, gender gaps rarely persist in countries where boys are attaining high levels of education. Most countries with large, current gender gaps have low levels of male educational attainment. Many also perform poorly on other measures of development such as life expectancy and GDP per capita. Improving girls’ education is an important goal in its own right, but closing gender gaps in education will not be sufficient to close critical gaps in adult life outcomes.
Topic:
Education, Gender Issues, Labor Issues, Inequality, Feminism, and Equality
Political Geography:
Global Focus

9. Senegal: Making Domestic Resource Mobilization Work to Sustain Growth and Improve Service Delivery

Author:
Birahim Bouna Niang and Ahmadoi Aly Mbaye
Publication Date:
01-2020
Content Type:
Commentary and Analysis
Institution:
Center for Global Development
Abstract:
Senegal’s recent economic performance is impressive. For the first time, Senegal has achieved a GDP growth rate of more than 6 percent for three consecutive years (2015–2017), and per capita GDP has increased at an annual average of 4.1 percent. In parallel, progress in fiscal revenues has been recorded, with the ratio of average revenues to GDP increasing by 5.7 percentage points between 2000-2002 and 2014-2017, placing Senegal above the regional average of 15 percent. Notwithstanding, the performance of the Senegalese tax system is limited by the country’s narrow tax base, largely attributable to a sizable informal sector. Despite accounting for more than half of GDP, Senegal’s informal sector makes up less than 3 percent of total tax collection. Revenue collection is also limited by the fast-growing array of exemptions, and by tax expenditures. These special dispensations mainly went to multinationals with local branches in Senegal. Tax expenditure more than doubled between 2010 and 2014, from18.4 percent of tax revenues and 3.4 percent of GDP to 40 percent of tax revenues and 7.8 percent of GDP. According to some estimates, the cumulative costs are close to 18 percent of annual GDP. Other factors deterring effective domestic resource mobilization include poor governance and the limited technical capacity of the tax administration, failures of the information system, and weak system transparency. Expenditures are often ineffective, particularly in the education and health sectors. Improving the state of public finances requires reforms to strengthen technical and institutional capacities and to adapt the management framework in view of Senegal’s entry into the hydrocarbon era. This might include setting up a public finance monitoring committee, adopting new budgetary rules consistent with those set by the West African Economic and Monetary Union, building relevant tax administration capacities. On the expenditure front, actions are needed to improve the targeting of support programs for vulnerable groups, and to implement capacity-building programs for government officials in charge of project evaluation, including in the Planning Directorate and in technical ministries. Lastly, a systematic ex ante and ex post evaluation of public investments is needed.
Topic:
Labor Issues, Economic Growth, Services, Mobilization, and Domestic Work
Political Geography:
Africa and Senegal

10. Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment

Author:
Michael Clemens
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
‘Guest workers’ earn higher wages overseas on temporary low-skill employment visas. This wage gap can be used to measure gaps in the productivity of workers due to where they are, not who they are. This paper estimates the effects of guest work on Indian applicants to a construction job in the United Arab Emirates, where an economic crisis allocated guest work opportunities as-good-as-randomly among several thousand families. Guest work raised the return to poor families' labor by a factor of four, with little evidence of systematic fraud.
Topic:
Migration, Labor Issues, Migrant Workers, and Guest Workers
Political Geography:
India and Asia

11. Women and the Future of Work: Fix the Present

Author:
Charles Kenny
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There is a lot we don’t know about what automation will mean for jobs in the future, including its impact (if any) on gender inequality. This note reviews evidence and forecasts on that question and makes four main points: Past automation has been (broadly) positive for women’s average quality of life, economic empowerment, and equality. Forecasts of the gendered impact of automation and AI going forward based on the current distribution of employment suggest considerable uncertainty and a gender inequality of impact that is marginal compared to the potential impact overall. The bigger risk—and/or opportunity—is likely to be in the combined impact of automation, policy, and social norms in changing the type of work that is seen as male or female. Minimizing any potential aggravating impact of automation and AI on inequalities in economic power in the future can best be achieved by maximizing economic equality today.
Topic:
Gender Issues, Labor Issues, Employment, Inequality, and Feminism
Political Geography:
Global Focus

12. Maximizing the Shared Benefits of Legal Migration Pathways: Lessons from Germany’s Skills Partnerships

Author:
Michael Clemens, Helen Dempster, and Kate Gough
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The world is experiencing significant demographic shifts. By 2100, Europe’s working-age population will have declined, and sub-Saharan Africa’s working-age population will have greatly increased. Many of these new labor market entrants will seek opportunities in Europe, plugging skill gaps and contributing to economies in their countries of destination. Germany is one country piloting and implementing projects that can help alleviate such demographic pressures and maximize the potential mutual benefits of legal labor migration. We discuss these projects, and highlight differences in their potential impact on development in the country of origin. We recommend that European governments build on, adapt, and pilot-test one of Germany’s approaches, also known as the Global Skill Partnership model: training potential migrants in their countries of origin before migration, along with non-migrants. Ideally, governments should pursue such pilot-tests with those countries that exhibit rising future migration pressure to Europe, particularly in sub-Saharan Africa. Neither the conclusion nor the results of this analysis reflect the opinion of the Federal Ministry of Economic Cooperation and Development (BMZ) or Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
Topic:
Migration, Labor Issues, Immigration, and Border Control
Political Geography:
Africa, Europe, Germany, and Sub-Saharan Africa

13. Teacher Professional Development around the World: The Gap between Evidence and Practice

Author:
Anna Popova, David Evans, Mary E. Breeding, and Violeta Arancibia
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Many teachers in low- and middle-income countries lack the skills to teach effectively, and professional development (PD) programs are the principal tool that governments use to upgrade those skills. At the same time, few PD programs are evaluated, and those that are evaluated show highly varying results. In this paper, we propose a set of indicators—the In-Service Teacher Training Survey Instrument—to standardize reporting on teacher PD programs. Applying the instrument to 33 rigorously evaluated PD programs, we find that programs that link participation to career incentives, have a specific subject focus, incorporate lesson enactment in the training, and include initial face-to-face training tend to show higher student learning gains. In qualitative interviews, program implementers also report follow-up visits as among the most effective characteristics of their professional development programs. We then use the instrument to present novel data on a sample of 139 government-funded, at-scale professional development programs across 14 countries. The attributes of most at-scale teacher professional development programs differ sharply from those of programs that evidence suggests are effective, with fewer incentives to participate in PD, fewer opportunities to practice new skills, and less follow-up once teachers return to their classrooms.
Topic:
Development, Education, Labor Issues, Academia, and Teaching
Political Geography:
Global Focus

14. Promoting New Kinds of Legal Labour Migration Pathways Between Europe and Africa

Author:
Michael Clemens, Helen Dempster, and Kate Gough
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
As Europe’s working-age population continues to decline, sub-Saharan Africa’s is rapidly increasing. Many of these new labour market entrants will seek opportunities in Europe, plugging skill gaps and contributing to economies in their countries of destination. To make the most of these movements, the new European Commission should create and promote new kinds of legal labour migration pathways with more tangible benefits to countries of origin and destination; pilot and scale Global Skill Partnership projects between Europe and sub-Saharan Africa and within Africa; and be a positive voice for migration within Europe, promoting the benefits from migration and ensuring they are understood.
Topic:
Migration, Labor Issues, Legal Theory, Borders, and Labor Market
Political Geography:
Africa and Europe

15. Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion

Author:
Michael Clemens, Ethan Lewis, and Hannah Postel
Publication Date:
03-2017
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
An important class of active labor market policy has received little rigorous impact evaluation: immigration barriers intended to improve the terms of employment for domestic workers by deliberately shrinking the workforce. Recent advances in the theory of endogenous technical change suggest that such policies could have limited or even perverse labor market effects, but empirical tests are scarce. We study a natural experiment that excluded almost half a million Mexican ‘bracero’ seasonal agricultural workers from the United States, with the stated goal of raising wages and employment for domestic farm workers. We build a simple model to clarify how the labor market effects of bracero exclusion depend on assumptions about production technology, and test it by collecting novel archival data on the bracero program that allow us to measure state-level exposure to exclusion for the first time. We reject the wage effect of bracero exclusion required by the model in the absence of induced technical change, and fail to reject the hypothesis that exclusion had no eect on US agricultural wages or employment. Important mechanisms for this result include both adoption of less labor-intensive technologies and shifts in crop mix.
Topic:
Labor Issues, Immigration, and Financial Markets
Political Geography:
Mexico

16. Shared Border, Shared Future: A Blueprint to Regulate US-Mexico Labor Mobility

Author:
Carlos Gutierrez, Ernesto Zedillo, and Michael Clemens
Publication Date:
09-2016
Content Type:
Special Report
Institution:
Center for Global Development
Abstract:
Mexico and the United States have lacked a bilateral agreement to regulate cross-border labor mobility since 1965. Since that time, unlawful migration from Mexico to the US has exploded. Almost half of the 11.7 million Mexican-born individuals living in the U.S. do not have legal authorization. This vast black market in labor has harmed both countries. These two neighboring countries, with an indisputably shared destiny, can come together to work out a better way. The time has come for a lasting, innovative, and cooperative solution. To address this challenge, the Center for Global Development assembled a group of leaders from both countries and with diverse political affiliations—from backgrounds in national security, labor unions, law, economics, business, and diplomacy—to recommend how to move forward. The result is a new blueprint for a bilateral agreement that is designed to end unlawful migration, promote the interests of U.S. and Mexican workers, and uphold the rule of law.
Topic:
International Political Economy, International Affairs, Labor Issues, and Border Control
Political Geography:
America and Mexico

17. Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development

Author:
Michael Clemens and Timothy N. Ogden
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
It is time to fundamentally reframe the research agenda on remittances, payments, and development. We describe many of the research questions that now dominate the literature and why they lead us to uninformative answers. We propose reasons why these questions dominate, the most important of which is that researchers tend to view remittances as states do (as windfall income) rather than as families do (as returns on investment). Migration is, among other things, a strategy for financial management in poor households: location is an asset, migration an investment. This shift of perspective leads to much more fruitful research questions that have been relatively neglected. We suggest 12 such questions.
Topic:
Economics, Migration, Political Economy, Poverty, Labor Issues, and Immigration

18. Is It All About the Tails? The Palma Measure of Income Inequality

Author:
Alex Cobham and Andy Sumner
Publication Date:
09-2013
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There are normative or instrumental reasons why inequality may be said to matter (e.g. fairness and meritocracy). However, much global literature has taken an instrumentalist approach as to why high or rising inequality can hinder development. For example, Birdsall (2007) argues that income inequality in developing countries matters for at least three instrumental reasons: where markets are underdeveloped, inequality inhibits growth through economic mechanisms; where institutions of government are weak, inequality exacerbates the problem of creating and maintaining accountable government, increasing the probability of economic and social policies that inhibit growth and poverty reduction; and where social institutions are fragile, inequality further discourages the civic and social life that underpins the effective collective decision-making that is necessary to the functioning of healthy societies.
Topic:
Economics, Poverty, Social Stratification, and Labor Issues

19. Remittances and Rashomon

Author:
Devesh Kapur and Randall Akee
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Utilizing a novel data set on remittance data for India that matches household surveys to administrative bank data, we investigate the differences in self-reported and actual deposits to Non-Resident Indian (NRI) accounts. There is a striking difference between the perceived and actual frequency, as well as the amount of deposits, to NRI accounts. Our results indicate the presence of non-classical measurement error in the reporting of remittances in the form of deposits to NRI accounts. As a consequence, regression analyses using remittances as an explanatory variable may contain large upward biases instead of the usual attenuation of results under classical measurement error. Instrumental variables estimates are no better; the estimated coefficients from these regressions are more than three times the size of the OLS regression results. The results point to the need to more carefully check the accuracy of the international remittance flows. The wide discrepancies in the Indian case could be both because of inaccuracies in the household survey as well as mis-classification of the Balance of Payment data with some fraction of reported remittances being disguised capital flows (and hence likely to be less stable) rather than current account flows for family maintenance.
Topic:
Development, Economics, and Labor Issues
Political Geography:
South Asia

20. Globalization, Wages, and Working Conditions: A Case Study of Cambodian Garment Factories

Author:
Cael Warren and Raymond Robertson
Publication Date:
06-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
We use a comprehensive data set of working conditions and wage compliance in Cambodia's exporting garment factories to explore (1) the impact of foreign ownership on wages and working conditions, (2) whether the relationship between wages and working conditions within these exporting factories more closely resembles efficiency wage or compensating differential theory, and (3) whether the wage-working conditions relationship differs between domestically owned and foreign-owned firms. We find that foreign ownership increases compliance on both wages and working conditions, contradicting the contention that higher wages in foreign-owned firms compensate workers for worse working conditions. In addition, we find a robust positive relationship between wages and working conditions in the sample as a whole, suggesting that efficiency wages or a similar theory more accurately explains the behavior of these exporting firms than compensating differentials.
Topic:
Development, Industrial Policy, and Labor Issues
Political Geography:
Cambodia and Southeast Asia