Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan

Afghanistan’s economic prospects are dim and its growth options limited. This puts pressure on the labor market, with 400,000 new entrants joining the labor force annually. As in the past, this will likely lead to mostly illegal emigration with lim...

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Main Author: Holzmann, Robert
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/746891516915310370/Managed-labor-migration-in-Afghanistan-exploring-employment-and-growth-opportunities-for-Afghanistan
http://hdl.handle.net/10986/29275
id okr-10986-29275
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spelling okr-10986-292752021-05-25T09:10:54Z Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan Holzmann, Robert LABOR MARKET INTERNATIONAL MIGRATION MIGRANT LABOR REMITTANCES GULF COOPERATION COUNCIL ECONOMIC GROWTH MIGRATION LABOR MOBILITY DEMOGRAPHICS INSTITUTIONAL REQUIREMENTS SKILLS DEVELOPMENT CGE MODEL Afghanistan’s economic prospects are dim and its growth options limited. This puts pressure on the labor market, with 400,000 new entrants joining the labor force annually. As in the past, this will likely lead to mostly illegal emigration with limited employment prospects and wages in neighboring countries (Pakistan, Iran) and beyond. This is unfortunate given Afghanistan’s geographic proximity to the world’s third largest migration destination region behind North America and Europe: the countries of the Gulf Coordination Council (GCC). For some time now, various Asian countries have used managed labor migration as a means to secure temporary and legal jobs for their surplus labor, garnering higher wages and opportunities to transfer income back to their families, save for future investments, and gain work experience and higher skills. Managed labor migration based on well-designed bilateral labor agreements that reflect the objectives of both the labor-sending and labor-receiving country could open opportunities for Afghanistan in GCC countries and even in higher wage labor markets, provided that adequate labor-sending systems are in place. This paper explores the use of managed labor migration as an instrument for employment for the Afghan labor force and for economic growth. It investigates the supply of and demand side for managed migration flows, estimates the impact on the volume of remittances sent back, and examines the possible impact of formal labor migration opportunities on skills formation of migrants and of the labor force remaining home. These quantitative profiles of remittances and skills are explored with a country-calibrated computable general equilibrium model to estimate the impact on output, economic growth, and other relevant economic outcomes; they may trigger policy action to make managed labor migration a reality in Afghanistan. 2018-01-30T21:31:26Z 2018-01-30T21:31:26Z 2018-01 Working Paper http://documents.worldbank.org/curated/en/746891516915310370/Managed-labor-migration-in-Afghanistan-exploring-employment-and-growth-opportunities-for-Afghanistan http://hdl.handle.net/10986/29275 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper South Asia Afghanistan
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic LABOR MARKET
INTERNATIONAL MIGRATION
MIGRANT LABOR
REMITTANCES
GULF COOPERATION COUNCIL
ECONOMIC GROWTH
MIGRATION
LABOR MOBILITY
DEMOGRAPHICS
INSTITUTIONAL REQUIREMENTS
SKILLS DEVELOPMENT
CGE MODEL
spellingShingle LABOR MARKET
INTERNATIONAL MIGRATION
MIGRANT LABOR
REMITTANCES
GULF COOPERATION COUNCIL
ECONOMIC GROWTH
MIGRATION
LABOR MOBILITY
DEMOGRAPHICS
INSTITUTIONAL REQUIREMENTS
SKILLS DEVELOPMENT
CGE MODEL
Holzmann, Robert
Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan
geographic_facet South Asia
Afghanistan
description Afghanistan’s economic prospects are dim and its growth options limited. This puts pressure on the labor market, with 400,000 new entrants joining the labor force annually. As in the past, this will likely lead to mostly illegal emigration with limited employment prospects and wages in neighboring countries (Pakistan, Iran) and beyond. This is unfortunate given Afghanistan’s geographic proximity to the world’s third largest migration destination region behind North America and Europe: the countries of the Gulf Coordination Council (GCC). For some time now, various Asian countries have used managed labor migration as a means to secure temporary and legal jobs for their surplus labor, garnering higher wages and opportunities to transfer income back to their families, save for future investments, and gain work experience and higher skills. Managed labor migration based on well-designed bilateral labor agreements that reflect the objectives of both the labor-sending and labor-receiving country could open opportunities for Afghanistan in GCC countries and even in higher wage labor markets, provided that adequate labor-sending systems are in place. This paper explores the use of managed labor migration as an instrument for employment for the Afghan labor force and for economic growth. It investigates the supply of and demand side for managed migration flows, estimates the impact on the volume of remittances sent back, and examines the possible impact of formal labor migration opportunities on skills formation of migrants and of the labor force remaining home. These quantitative profiles of remittances and skills are explored with a country-calibrated computable general equilibrium model to estimate the impact on output, economic growth, and other relevant economic outcomes; they may trigger policy action to make managed labor migration a reality in Afghanistan.
format Working Paper
author Holzmann, Robert
author_facet Holzmann, Robert
author_sort Holzmann, Robert
title Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan
title_short Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan
title_full Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan
title_fullStr Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan
title_full_unstemmed Managed Labor Migration in Afghanistan : Exploring Employment and Growth Opportunities for Afghanistan
title_sort managed labor migration in afghanistan : exploring employment and growth opportunities for afghanistan
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/746891516915310370/Managed-labor-migration-in-Afghanistan-exploring-employment-and-growth-opportunities-for-Afghanistan
http://hdl.handle.net/10986/29275
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