Towards Better Labor Migration Systems in Northern Central America: Overview of Findings from El Salvador, Guatemala, and Honduras

Abstract

This note aims to close the knowledge gap about the effectiveness and capacity of labor migration sending systems in NCA countries. The report assesses whether NCA countries have the fundamental elements of an effective labor migration sending system, identifies the missing elements, and offers recommendations for strengthening the systems over time. Filling such a knowledge gap is critical to inform policies that maximize the benefits and minimize the costs of economic migration. Programs and policies that help expand legal pathways for regular migration will not only promote mutually beneficial migration, but could be a step, albeit small, towards dissuading individuals from pursuing risky migration patterns. Indeed, evidence from Mexico indicates that investing in legal labor pathways can reduce irregular migration (Clemens and Gough, 2018). In this context, this note summarizes the main findings from three institutional diagnostics of the labor migration sending systems in NCA countries, with a view to deepening the understanding of the supply side of labor flows. To this end, and building on previous World Bank experience globally, a diagnostic tool was developed to identify what steps the NCA governments have taken to recognize and respond to foreign demand for workers. The tool examines if appropriate structures, systems, processes, and resources exist to prepare and deliver adequate labor supply arrangements in the context of bilateral agreements (BLAs) or Temporary Work Agreements (TWAs) with other countries. The diagnostic tool is organized around four main pillars to regulate, facilitate, fortify, and further access of labor migrants to international labor markets.