Developing countries host more than one-third of international migrants in the world. Most immigrants are migrant workers and are employed either formally or more often informally in their countries of destination. Immigration thus plays a key role in the destination countries’ economic development. A number of low- and middle-income countries, however, lack evidence and awareness of how immigrants can contribute to different segments of the economies and very few have developed and implemented appropriate policy frameworks. A large informal economy associated with weak labour migration management capacities and a lack of active labour market policies prevent many destination countries from making the most of immigration.

With more than one-third of international migrants residing in developing countries, immigration has an increasing weight on the socioeconomic development of low- and middle-income countries. Yet, policy debate on how immigrants affect host countries often relies more on perception than evidence. A more systematic analysis on the economic impact of labour immigration in developing countries will better inform policy makers to formulate policies aiming to make the most of immigration in destination countries.

This chapter gives an overview of the project Assessing the Economic Contribution of Labour Migration in Developing Countries as Countries of Destination. The ten countries that participated in the project are Argentina, Costa Rica, Côte d’Ivoire, the Dominican Republic, Ghana, Kyrgyzstan, Nepal, Rwanda, South Africa and Thailand. The chapter first explains why a better understanding of the economic effects of labour immigration matters for policy makers in developing countries, and how and why the ten partner countries were selected. The chapter then provides details on the different methodological approaches used by the project team and summarises the main findings of the report from a comparative perspective. Finally, the chapter offers policy recommendations to increase immigrants’ economic contribution in developing countries.

This chapter provides an overview of the migration landscape in the ten partner countries of the project Assessing the Economic Contribution of Labour Migration in Developing Countries as Countries of Destination. It first presents the main migration patterns in each country, in particular by comparing the stocks and flows of both immigrants and emigrants and by showing some of the characteristics of labour migrants – the main focus of this report. The chapter then analyses the drivers of immigration, not only through an economic lens, but also by studying social, political and institutional factors. Finally, it lays out the policy and institutional environment in which immigration evolves. Overall, the chapter provides the basis for the analysis in the following chapters of the report, as patterns, drivers and policy environments influence the way labour immigrants contribute to the economies of their destination countries.

This chapter first reviews indicators on the volume of employment of immigrants in the ten partner countries of the project Assessing the Economic Contribution of Labour Migration in Developing Countries as Countries of Destination. It then turns to indicators on the nature and quality of employment. The focus is on sectoral and occupational change for both native-born and foreign-born workers. The chapter also examines occupational change based on a demographic decomposition method which allows for various comparisons including those between immigrant workers and native-born entrants to the labour market. Finally, the chapter compares the educational attainment of the native-born and the foreign-born and looks into mismatches between jobs and skills.

This chapter first provides a general overview of research on the labour market impact of immigration in the ten partner countries of the project Assessing the Economic Contribution of Labour Migration in Developing Countries as Countries of Destination. It describes selected labour market outcomes affecting the native-born populations. To analyse the effects of foreign-born workers on native-born workers’ wages and labour market outcomes, the chapter looks at the simple relationship between shares of foreign-born workers and employment-to-population ratios of native-born workers. This is followed by a more detailed analysis which controls for differences between workers in terms of education, experience and time. Finally, the chapter suggests policy implications and future research.

This chapter looks at the impact of immigrants on economic growth in the context of the project Assessing the Economic Contribution of Labour Migration in Developing Countries as Countries of Destination. The first section discusses immigrants’ contribution towards value added and per-capita income. The second section explores ways in which immigration contributes to selected economic sectors, including potential effects on productivity. The final section investigates the link between immigration and entrepreneurship.

The present chapter seeks to determine whether immigrants pay more or less in taxes than they generate in public expenditures in a given year, and what sources account for outcome differentials across countries. The first section provides a general overview of public finances in the partner countries in comparison to other developing countries. The second section explains the methodology and presents the main results of the analysis. The third section discusses how immigrants’ education and labour market characteristics affect their fiscal impact. Finally, the conclusions summarise the main findings and discuss their policy implications.