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Low-skilled labor migration: Measuring Migration Costs
KNOMAD The World Bank
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Outline Objective of KNOMAD work on measuring
migration costs
Measuring migration cost through migrant surveys
Stylizes facts on migration costs
Migration cost questionnaire ready for public use
KNOMAD Work on Measuring Migration Cost
No comprehensive data on migration cost available
To build a database on migration cost (bilateral matrix), comparable across migration corridors
To help better understand the structure of migration cost and the extent of fees paid to private recruiters and agencies.
To contribute to setting a global target to reduce recruitment costs, part of SDG – e.g., to reduce to one-month wage.
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Measuring migration costs through migrant surveys Phase I (2013/4, completed):
Pre-pilot survey in Spain, Pilot survey in Kuwait and Korea.
Phase II (2014/5, on-going): Returnee surveys in Ethiopia, India, Nepal, Pakistan
(ILO) and the Philippines. Migrant surveys in Malaysia (ILO) and Mexico Using CAPI, building capacity of local researchers
Phase III (2015/6, planed): Survey part of national labor force survey in selected countries.
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Which migration costs are we measuring in the migration cycle?
Employers request
permission
Employers issue job orders to recruiters
Job orders arrive in
labor sending
countries
Deployment process
Employment
Return/ reintegratio
n/ redeploym
ent
What constitutes migration cost in the deployment process? Compliance cost
National documents: Passport, visa Security-related: Medical check-up, security clearance Skills/competency-related: Language test Welfare fund membership
Transportation cost Internal transportation cost to obtain required
documents. International transportation cost to cross borders.
Recruitment service fees paid to recruiters/ other service providers (e.g., learn about job) Incur possibly owing to information asymmetry. A possible intervention area to correct market failure.
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Destination
Origin Recruitment costs
Earnings in destination
Recruitment costs in months of earnings
Prior earnings in origin country (month)
Korea Indonesia
1,506 1,394 1.1 219
Kuwait India 1,248 494 2.5 192
Spain Ecuador 1,046 1,300 0.8 132
UAE Pakistan
2,148 387 5.6 140
Wage in destination - a mechanism to reduce recruitment costs
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Well-managed migration policies can result in low variation across origins
Thailand Indonesia Vietnam
1466
1506
1582
Average migration cost (US$)
Workers migrated to Korea through the Employment Permit System
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To Korea, key cost components are transportation and language test (average, US$)
17 29 37 43 56 71 85
247298
364
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Spain – Below one-month wage ($1,300), largely for international transportation
Bulgaria Morocco Ecuador
201
400
1032
Average migration cost (US$)
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Implementation of BLAs – a tool to lower recruitment costs
Male Female
2309
640
(Averages, in constant 2014 US$)
Earn some $300 per month
Earn about $513 per month
Female domestic helpers – paying less than males,
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Kuwait – Seven times as much as average monthly earnings ($462)
Sri Lanka Egypt India Bangladesh
319616
1248
3136
Average migration cost (US$)
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Qatar – between 1~ 2.5 month-earnings ($588/month)
Philippines India
503
1159
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Saudi Arabia
Ethiopia Pakistan
750
4376
Equivalent to 3 month-earnings
Equivalent to some 15 month-earn-ings
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Bangladesh/ Pakistan – high visa fees (visa trading)
Bangladesh Pakistan0
500
1000
1500
2000
2500
3000
International transportPassport/ other documentsVisaRecruitment agent
(Average cost in constant 2014 US$)
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India/ Philippines – relatively high recruitment agency fees
India Philippines 0
100
200
300
400
500
600
(Average costs in constant 2014 US$)
Document/compliance costs Domestic transportation
International transportation Visa
Informal payment Recruitment agency
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Ensure workers migrate through regular channels
Regular migrants Irregular migrants0
100
200
300
400
500
600
(Average costs in constant 2014 US$)
Document/compliance costs Domestic transportationInternational transportation VisaInformal payment Recruitment agency
Ethiopia – higher fees paid by irregular migrants
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Migration cost questionnaires – Available on-line
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Migration cost questionnaires – Available on-line
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Interviews managed on-line and in-time
![]Global Migration of the Highly Skilled](https://img.pdfslide.us/doc/110x75/5695d1931a28ab9b029714fb/global-migration-of-the-highly-skilled.jpg)
