Migrant Network and Immigrants’ Occupational Mismatch

This article defines new measures of horizontal and vertical occupational mismatch based on the difference between the skill content of occupations in which individuals have a self-assessed productive advantage, and that of their actual job. It then investigates the impact of network use to find a job on occupational mismatch in the case of immigrants, using original survey data collected among Senegalese immigrants in four host countries. Estimation results show that migrants who obtained their job through the migrant network have a lower probability of negative vertical mismatch. By contrast, network use is not found to significantly affect horizontal mismatch.     

The Invisibility of Wage Employment in Statistics on the Informal Economy in Africa: Causes and Consequences

Abstract

This article challenges the claim, along with the statistics that support it, that self-employment is by far the dominant employment status in the informal economy. The article begins by reviewing key insights from relevant literature on the informal economy to argue that conventional notions of ‘wage employment’ and ‘self-employment’, while unfit for capturing the nature and variety of employment relations in developing countries, remain central to the design of surveys on the workforce therein. After putting statistics on Tanzania’s informal economy and labour force into context, the analysis reviews the type of wage employment relationships that can be found in one instance of the informal economy in urban Tanzania. The categories and terms used by workers to describe their employment situation are then contrasted with those used by the latest labour force survey in Tanzania. The article scrutinises how key employment categories have been translated from English into Swahili, how the translation biases respondents’ answers towards the term ‘self-employment’, and how this, in turn, leads to the statistical invisibility of wage labour in the informal economy. The article also looks at the consequences of this ‘statistical tragedy’ and at the dangers of conflating varied forms of employment, including wage labour, that differ markedly in their modes of operation and growth potential. Attention is also paid to the trade-offs faced by policy-makers in designing better labour force surveys.     

Who Suffers the Penalty?: A Panel Data Analysis of Earnings Gaps in Vietnam

In spite of its predominant economic weight in developing countries, little is known about the informal sector earnings structure compared to that of the formal sector. Taking advantage of the rich VHLSS dataset in Vietnam, in particular its three wave panel data (2002, 2004, 2006), we assess the magnitude of various formal–informal earnings gaps while addressing heterogeneity at three different levels: the worker, the job (wage employment vs. self-employment) and the earnings distribution. We estimate fixed effects and quantile regressions to control for unobserved individual characteristics. Our results suggest that the informal sector earnings gap highly depends on the workers’ job status and on their relative position in the earnings distribution. Penalties may in some cases turn into premiums. By comparing our results with studies in other developing countries, we draw conclusions highlighting Vietnam’s labour market specificity.     

Market control in developing economies

This article analyses the role of government effectiveness in the determination of informal employment. A theoretical model is developed, in which local governance and worker skill level are assumed to influence the decision of the worker whether to seek employment in the formal or informal sectors. The model is assessed empirically using data from Brazil, where almost half of the urban labour force is employed informally. The empirical analysis supports the predictions of the model and suggests that the probability of a worker being employed informally is lower in regions with better governance and higher average education.     

What Explains the Job Creating Potential of Industrialisation in the Developing World?

This paper examines why job creation in the manufacturing sector has differed widely across developing countries, using a modified Lewis model that captures the scale, composition and labour intensity effects of industrialisation on job creation. We show that while the scale effect has been mostly positive, labour intensity and composition effects have been mostly negative. Trade integration has a positive impact on manufacturing employment via the scale and composition effects, but a negative impact via the labour intensity effect. Human capital has a positive effect via the labour intensity effect. Labour regulations have no impact through any of the effects.     

Labour Migration and Health of Left-Behind Children in China

With rapid urbanisation, millions of people from rural areas have migrated to major cities for employment, leaving their young children at home. This labour migration creates substantial mental and physical challenges for these left-behind children. This study establishes two empirical models for comparing the health status of left-behind children with that of children in rural areas without migrant parents and with that of migrant children in urban areas. Our empirical findings reveal that parental migration negatively affects the height and weight indices of left-behind children. The effects are particularly prominent for younger children, when both parents migrate or when parents migrate out of province.     

Regional and technological dualism: A dual‐dual development framework applied to Puerto Rico

A ‘dual‐dual’ framework is proposed which captures the prevailing regional dualism (between rural and urban areas) and technological dualism (between traditional and modern techniques). Six interdependent sectors are specified: 1) urban formal, 2) urban informal, 3) rural non‐farm formal, 4) rural non‐farm informal, 5) rural farm formal, and 6) rural farm informal. The framework is applied to the case of Puerto Rico and its experience with an ‘industrialisation‐first’ development strategy between 1950 and 1970. It is shown that this framework lends itself well to the analysis of such issues as the pattern of employment, migration, and income distribution among regions and sectors.     

Manpower planning and labour markets in developing countries: A case study of west Malaysia

In the past, aggregative studies and forecasts have dominated manpower planning in developing countries. Such exercises, however, tend to assume away or ignore a host of institutional factors that have far‐reaching influences on the determination of wages and employment and on the efficiency of labour markets. Consequently, this paper argues that disaggregated manpower research, focussed on current problems and conditions in employment markets, would be far more useful to economic development policies than the sort of abstract macro‐planning aimed at forecasts of long‐term manpower requirements which has been highly fashionable during the last decade.

The theme of the paper is substantiated with reference to the organization and workings of labour markets in West Malaysia. It is found that institutional and economic factors peculiar to that country have resulted in three ‘insulated’ labour markets, one each for Malays, Chinese and Indians, with practically no mobility of labour across insulated markets, even in widely divergent supply‐demand conditions. The final sections of the paper briefly examine the implications of insulated markets for manpower and economic policies.     

Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam

Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households’ and entrepreneurs’ social networks and business performance. We address two related questions. The first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on business technical efficiency. The hypothesis is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realise a lower output than what could be possible with the same amount of resources. We find evidence of a marginal productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We also stress the importance of professional networks for successful entrepreneurship.     

Who Benefits from Higher Education in Low- and Middle-Income Countries?

In this article, we investigate how higher education contributes to the employment and earnings of individuals in labour markets, and whether social origins play a role in the financial benefits from higher education. We focus on these questions in nine low- and middle-income countries: Armenia, Bolivia, Colombia, Georgia, Ghana, Kenya, Laos, Macedonia, and Vietnam. We use the recent Skills Towards Employability and Productivity (STEP) surveys of urban labour force participants to examine individuals’ educational attainment, labour market participation, and earnings. Using logistic regressions, we find that individuals from disadvantaged origins are less likely to obtain a higher education degree. We find that in most of these countries, individuals who have earned a higher education degree are significantly more likely to be in the labour force and find employment, and enjoy sizable earnings premia. The findings are fairly robust with regard to the samples of individuals examined, and the methods used to measure earnings premia. Finally, we find little evidence that the earnings premia from higher education vary by social origins or the likelihood of an individual completing a degree. These results suggest that the benefits from higher education are comparable for individuals from disadvantaged and advantaged social origins.     

The School-to-Work Transition in Developing Countries

Youth bulges in developing countries may carry both a potential for growth via demographic dividends, and ticking political time bombs, depending on the success of authorities in providing youth with adequate opportunities as they transit into the labour markets of the twenty-first century. In this article I examine the theoretical and empirical research on school-to-work transitions (SWT) in developing countries. After a discussion of the attempts at operationalising the concept of school-to-work transitions from a statistical point of view, I review the theoretical settings suitable for analysing the SWT. Despite an extensive search and matching literature, few models seem adapted to developing countries’ labour markets, and even fewer are empirically tested. I then examine the determinants of transition lengths at the individual and macro level. Findings indicate that education is not always associated with shorter durations to first employment, and that the reasons may be higher expectations, reservation wages, or queuing. Women generally experience longer transitions in the labour market, and evidence from labour market interventions is mixed. Many factors likely to influence the school-to-work transition have not been studied from the point of view of school-to-work transitions, however, and potential directions for future research are presented.     

Adjustment,stabilisation and the structure of employment in Brazil

A significant change in the structure of employment in Brazil in the period 1988–95 took place. Industrial employment fell, especially in the most traditional sectors such as clothing, textiles and footwear. There has been a shift of workers from the industrial sector to the services sector and an increase in the share of self‐employed workers and informal wage earners. The quality of jobs being created in the services sector are not of the same ‘quality’ as those in the industrial sector, leading to a deterioration of employment conditions and of the labour market performance. Hence the rate of unemployment is not a very good measure of labour market conditions during adjustment. The creation of jobs in general might therefore not be an explicit target under adjustment. Rather the objective should be trying to change labour market institutions in order to improve the quality of the jobs and the quality of the labour relations.     

How Resilient are Labour Markets to Natural Disasters? The Case of the 1998 Bangladesh Flood

Natural disasters devastate economies as they impede capital accumulation. The resilience of labour markets is crucial for the poor who rely on labour to reduce risk. We evaluate how the 1998 ‘flood of the century’ affected wages in Bangladesh. We find short-term declines in agricultural and non-agricultural wages. Agricultural workers who moved towards non-agricultural employment to cope benefitted through a lower percentage reduction in short-term wages. Endowed with human capital, salaried workers were unable to mitigate income risk. Extending the eligibility of credit access or relief programmes may preserve local businesses and their employees in the years following a flood.     

Living and working as a domestic worker in the Middle East: the experience of migrant returnees in Girana town,North Wollo,Ethiopia

ABSTRACT

This article explores the migration experiences of Ethiopian migrant returnees from domestic work in the Gulf countries and Lebanon. The returnees reside in the town of Girana located in Habru sub-district, North Wollo zone of Amhara region. There is much female work migration to the Arab Middle East from the town, particularly to Saudi Arabia through Muslim pilgrimage. Employing a qualitative method, the study examines how the returnee women perceived and experienced labour migration and analyzes the impacts of labour migration on childcare, family survival back home, and debt payment. The returnees made voluntary regular and irregular labour migration to the region and engaged in domestic work, which is not preferred by the host society. However, domestic work is unregulated by the labour policy of the destination countries. This made the returnees’ employment situation rather exploitative, exacerbating their vulnerability to abuses, ethnic denigration, and undermining of cultural identity.     

Labour and Its Discontents: The Consequences of Orthodox Reform in Venezuela and Mexico

The negative impacts of orthodox liberalisation policies on labour in Venezuela and Mexico were representative of outcomes elsewhere in Latin America. Untheorised increases in precarious informal work, unemployment, and emigration as well as a growing breech between wages and productivity followed trade, capital, and labour market reforms and the prescribed macro stabilisation policies. Orthodox reforms in both countries paradoxically facilitated market failures given the forms or modes taken by foreign direct investment (FDI), which introduced ever more increasing scale economies with their attendant information imperfections. In addition, the growing competition from tradeable goods faced by domestic producers in both countries and the decision to buy rather than make technologies by way of FDI undermined job creation and induced inter-sectoral flows toward service sector and informal work.     

Climate Instability,Urbanisation and International Migration

This paper focuses on climate-induced migration. We construct a simple theoretical model where, in a first step, climate shocks accelerate the transition from the traditional to the modern sector, leading rural workers to move to urban centres within national borders, while in a second step, downward pressures on wages due to the greater labour supply in cities push people to engage in international migration. To test this hypothesis, we exploit a rich panel dataset, displaying a representative picture of bilateral migration flows and climatic data across 222 countries for the period 1960–2000. Findings suggest that in the next few years the climate-induced growth rate of migrant stocks might be in a range between 8.6 per cent and 12.8 per cent, especially from developing countries, where the level of rural employment is more likely to be affected by climatic shocks.     

The global governance of informal economies: the International Labour Organization in East Africa

This article develops a Gramscian approach to the governance of ‘informal’ economies through a historical study of International Labour Organization (ILO) programmes in East Africa. Drawing on Gramsci’s conception of the ‘subaltern’, the article highlights the ways in which the articulation of ‘informality’ in policy documents is coloured by broader struggles over the political organisation of labour. The article develops this argument through two case studies. The first examines the World Employment Programme mission to Kenya in the 1970s that popularised the concept of ‘informal’ labour. The second is a contemporary programme on apprenticeships in the informal economy that originated in Tanzania.     

“Asking Around”: Immigrants' Counterstrategies to Renew Their Residence Permit in Times of Economic Crisis in Italy

In contrast to the main body of literature focusing on irregular migrants' counterstrategies, this article explores regular migrant workers' practices to renew their residence permit in an attempt to circumvent structural hurdles due to the restrictive Italian legislative framework. Studying migrants' agency in a socioeconomic context, characterized by high unemployment rates and extensive informal working patterns, I thus distinguish three main counterstrategies: (1) the use of their informal networks to falsify their working relations; (2) the possibility of starting up an individual firm; and (3) taking advantage of structural “loopholes.”     

The Limits of Instrumentalism: Informal Work and Gendered Cycles of Food Insecurity in Mozambique

The instrumentalist literature suggests that women can help achieve household food security if they have access to productive resources but do not become overburdened as a result. This paper seeks to assess the relevance of this literature by exploring the gendered cycles of food insecurity in the context of women’s informal labour in northern Mozambique. It considers the relation between women and food security as embedded in the broader socio-economic setting, and finds that the interaction of different forms of deprivation, such as lack of secure employment and conflicting labour demands, generates food insecurity.     

Poverty and prosperity among migrant settlers in the Amazon rainforest frontier of Ecuador

Household‐level interview data from a probability sample survey conducted in the northeastern Ecuadorian Amazon in 1990 are used to examine the determinants of income and assets among migrant farmers in the agricultural frontier. Multivariate analysis indicates that size of plot owned, proximity to markets, duration of residence, quality of soil, receipt of technical assistance, off‐farm employment and initial wealth positively influence current household income and wealth. More land in cattle pasture is also associated with higher status. Some settlers are prospering relative to others despite variable soil quality, unsustainable land uses, geographic isolation, apparent scarcity of labor, and lack of supportive infrastructure. The article closes with a discussion of implications for policies to assist small farmers, with some consideration of the potential ecological consequences of farmers’ activities.