Publication: The Development Impact of a Best Practice Seasonal Worker Policy
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Date
2014-05
ISSN
0034-6535
Published
2014-05
Author(s)
Gibson, John
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Abstract
Seasonal migration programs are widely used around the world, yet there is little evidence as to their development impacts. A multi-year prospective evaluation of New Zealand's Recognised Seasonal Employer (RSE) seasonal worker program allows us to measure the impact of participating in this program on households in Tonga and Vanuatu. Using a propensity-score pre-screened difference-in-differences analysis based on surveys fielded before, during, and after participation, we find that the RSE has indeed had positive development impacts that dwarf those of other popular development interventions. It has increased income, consumption, and savings of households; durable goods ownership; and subjective standard of living. The results also suggest that child schooling improved in Tonga.
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- Cited 77 times in Scopus (view citations)
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Publication The Development Impact of a Best Practice Seasonal Worker Policy(2010-11-01)Seasonal migration programs are widely used around the world, and are increasingly seen as offering a potential "triple-win"-- benefiting the migrant, sending country, and receiving country. Yet there is a dearth of rigorous evidence as to their development impact, and concerns about whether the time periods involved are too short to realize much in the way of benefits, and whether poorer, less skilled households actually get to participate in such programs. This paper studies the development impacts of a recently introduced seasonal worker program that has been deemed to be "best practice." New Zealand's Recognized Seasonal Employer program was launched in 2007 with an explicit focus on development in the Pacific alongside the aim of benefiting employers at home. A multi-year prospective evaluation allows measurement of the impact of participation in this program on households and communities in Tonga and Vanuatu. Using a matched difference-in-differences analysis based on detailed surveys fielded before, during, and after participation, the authors find that the Recognized Seasonal Employer program has indeed had largely positive development impacts. It has increased income and consumption of households, allowed households to purchase more durable goods, increased the subjective standard of living, and had additional benefits at the community level. It also increased child schooling in Tonga. This should rank it among the most effective development policies evaluated to date. The policy was designed as a best practice example based on lessons elsewhere, and now should serve as a model for other countries to follow.Publication Development through Seasonal Worker Programs : The Case of New Zealand's RSE Program(World Bank, Washington, DC, 2014-01)Seasonal worker programs are increasingly seen as offering the potential to be part of international development policy. New Zealand's Recognised Seasonal Employer program is one of the first and most prominent of programs designed with this perspective. This paper provides a detailed examination of this policy through the first six seasons. This includes the important role of policy facilitation measures taken by governments and aid agencies. The evolution of the program in terms of worker numbers is discussed, along with new data on the (high) degree of circularity in worker movements, and new data on (very low) worker overstay rates. There appears to have been little displacement of New Zealand workers, and new data show Recognised Seasonal Employer workers to be more productive than local labor and that workers appear to gain productivity as they return for subsequent seasons. The program has also benefitted the migrants participating in the program, with increases in per capita incomes, expenditure, savings, and subjective well-being. Taken together, this evidence suggests that the program is largely living up to its promise of a "triple win" for migrants, their sending countries in the Pacific, and New Zealand.Publication How Pro-Poor Is the Selection of Seasonal Migrant Workers from Tonga under New Zealand's Recognized Seasonal Employer Program?(World Bank, Washington, DC, 2008-08)Temporary migration programs for unskilled workers are increasingly being proposed as a way to both relieve labor shortages in developed countries and aid development in sending countries without entailing many of the costs associated with permanent migration. New Zealand's new Recognized Seasonal Employer program is designed to enable unskilled workers from the Pacific Islands to work in horticulture and viticulture in New Zealand for a period of up to seven months. However, the development impact on a sending country will depend not only on how many workers participate, but also on who participates. This paper uses new survey data from Tonga to examine the process of selecting workers for the Recognized Seasonal Employer program, and to analyze how pro-poor the recruitment process has been to date. The findings show that recruited workers come from largely agricultural backgrounds, and have lower average incomes and schooling levels than Tongans not participating in the program. Comparing the characteristics of program workers with those of Tongans applying to permanently migrate to New Zealand through the Pacific Access Category, the program workers are more rural and less educated. The program therefore seems to have succeeded in creating new opportunities for relatively poor and unskilled Tongans to work in New Zealand.Publication The Economic Consequences of “Brain Drain” of the Best and Brightest : Microeconomic Evidence from Five Countries(2010-08-01)Brain drain has long been a common concern for migrant-sending countries, particularly for small countries where high-skilled emigration rates are highest. However, while economic theory suggests a number of possible benefits, in addition to costs, from skilled emigration, the evidence base on many of these is very limited. Moreover, the lessons from case studies of benefits to China and India from skilled emigration may not be relevant to much smaller countries. This paper presents the results of innovative surveys which tracked academic high-achievers from five countries to wherever they moved in the world in order to directly measure at the micro level the channels through which high-skilled emigration affects the sending country. The results show that there are very high levels of emigration and of return migration among the very highly skilled; the income gains to the best and brightest from migrating are very large, and an order of magnitude or more greater than any other effect; there are large benefits from migration in terms of postgraduate education; most high-skilled migrants from poorer countries send remittances; but that involvement in trade and foreign direct investment is a rare occurrence. There is considerable knowledge flow from both current and return migrants about job and study opportunities abroad, but little net knowledge sharing from current migrants to home country governments or businesses. Finally, the fiscal costs vary considerably across countries, and depend on the extent to which governments rely on progressive income taxation.Publication Spurring Development through a Seasonal Migration Program(World Bank, Washington, DC, 2010-12)Lack of mobility of labor is likely the biggest distortion in global factor markets, resulting in large differences in the productivity and income a given worker can have in different places. As a result of this fact, facilitating emigration has the potential to be one of the most effective development interventions available. Seasonal worker programs are seen as one way to overcome many of the concerns associated with migration, thereby offering a 'triple-win' in which migrants, the sending country, and the receiving country can all benefit. Research provides the first rigorous evaluation of the impact of a seasonal migration policy on households in the sending country, and finds gains in household well-being which greatly exceed those measured for other popular development interventions like microfinance and conditional cash transfers.
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