Volume 10, 2001

Issue N. 3-4: International Migration and Structural Change in the APEC Member Economies

Stahl, Charles

"The Impacts of Structural Change on APEC Labor Markets and Their Implications for International Labor Migration," 10 (3-4) p. 349-377, 2001.

This study examines the impacts of structural change on the labor markets of APEC member economies and explores the implications of these changes for international labor mobility within the region. All APEC economies have experienced significant structural changes during the process of development. The impacts of these changes are explored through an analysis of the changes over the period 1980 to 1997 in output and employment by industry and occupation, and changes in trade intensity and foreign direct investment. In many countries, a failure of education and training systems to respond to often rapid shifts in the skill composition of labor demand is leading to industry and occupation specific labor shortages. International labor migration within the APEC region, and changes in its occupational and industrial composition, are viewed as a product of these structural changes and a mechanism that assists in filling gaps in the labor markets of the region’s economies. Because international labor migration will continue to expand within the APEC region, and will be given added impetus if APEC’s goals of free trade are realized, there is a pressing need to design policies that will regulate and facilitate it while ensuring the protection of migrant workers.

Tan, Edita A.

"Labor Market Adjustments to Large Scale Emigration: The Philippine Case," 10 (3-4) p. 379-400, 2001.

The international migration of Filipinos has raised questions on how outflows of human resources have affected the domestic labor market. Focusing on the education-labor market, the article presents a theoretical and empirical description of the factors affecting the supply and demand of specific skills. Typical of less developed countries, the education-labor market in the Philippines is beset by capital and information imperfections.  The article advances that the education-labor market has flexibility in supplying many of the skills demanded domestically and overseas. However, capital and information imperfections have restricted the efficient allocation of education or training investment to employment opportunities in the domestic and foreign labor markets.

Soonthorndhada, Kusol

"Changes in the Labor Market and  International Migration Since the Economic Crisis in Thailand," 10 (3-4) p. 401-427, 2001.

The economic crisis in July 1997 led to a sharp increase in unemployment and underemployment, particularly among workers with primary and lower secondary education, a drop in real earnings, and an increase in poverty incidence. Labor surplus and poverty pressures during the economic downturn likely boosted labor migration. New government measures in promoting overseas employment and the facilitation of recruitment agencies and migrants’ social networks encouraged the outflows. Data from the Ministry of Labor indicate higher levels of overseas labor migration, especially to Taiwan. Most Thai overseas workers have a primary education and are engaged in unskilled labor. Although the government has started to provide skills training to help workers adjust to the needs of the labor market, more measures are needed to promote sustainable employment and human resource development, especially in the rural areas. Better protection for Thai workers overseas is another priority.

Kanapathy, Vijayakumari

"International Migration and Labor Market Adjustments in Malaysia: The Role of Foreign Labor Management Policies," 10(3-4) p. 429-461, 2001.

There has been an increase in the global mobility of labor, and political and social imperatives will continue to compel nations to impose restrictions on international migration. The paper examines Malaysia's experience in regulating the inflow of foreign workers to facilitate its labor market adjustment process. The use of immigration policies to meet the competing objectives of  unfettered growth and industrial upgrading has recorded mixed success. Immigration policies are necessary but insufficient. They must be complemented and supplemented by labor market development strategies to foster quality growth based upon "high path" structural transformation.

Choi, Jin Ho

"International Migration, Human Resource Development and Migration Policy in Korea," 10 (3-4) p. 463-483, 2001.

Until the mid-1980s, Korea was a major labor exporter to Arab countries. The flow of international labor migration was reversed in the late 1980s as domestic wages increased and as construction projects declined in the Middle East. Conversely, a massive influx of migrant workers, mostly from Asian countries, took place since the beginning of the 1990s. The large proportion of irregular foreign workers has been a feature of international mgiration in Korea. The government has been trying to address this problem since 1992. In recent years, three policy issues have been discussed: the impacts of foreign workers on the national economy, choosing between the industrial training program and the employment permit system, and special laws for foreign workers. To cope with the challenges of international labor migration, particularly the problems generated by irregular migration, prudent policy measures are urgently needed which should be beneficial to the national economy and the migrant workers.

Wenruo, Hou

"China’s International Migration Policy," 10 (3-4) p. 485-50, 2001.

Labor export and the introduction of foreign experts have played an important role in China since it launched reform and open door policy in 1978. The article discusses China’s economic environment since then, the policies and mechanisms attendant to labor export and the introduction of experts, and presents data on international migration. Labor export is subsumed under the larger framework of economic growth. Thus, exporting labor is supplementary to the introduction of new technologies, infrastructure development, and improving the management of enterprises. To facilitate the introduction of new technologies and to improve the management of enterprises, the Chinese government encourages foreign experts to work in China. The government is against irregular migration and seeks to avoid brain drain.

Tsay, Ching-lung and Ji-ping Lin

"Labor Importation and Unemployment of Local Workers in Taiwan," 10 (3-4) p. 505-534, 2001.

Since the 1990s the labor market in Chinese Taipei has seen increasing employment of foreign workers vis-à-vis increasing local unemployment.  The situation has sparked policy debates and calls for restricting the importation of foreign workers. Do foreign workers take away jobs from domestic workers? To what extent can domestic unemployment be attributed to labor importation? Who are the domestic workers affected by labor importation? These questions were explored using data from the 1996-99 Manpower Utilization Surveys.  The study found that on the whole, there is no distinct relationship between labor importation and domestic unemployment. However, foreign labor does have a positive influence on employment for managerial/professional workers and a negative effect for the semi- and less-skilled construction workers. The use of foreign workers seems to affect domestic unemployment in sectors which are foreign labor-intensive sectors such as electronics and construction. Foreign workers do not complement domestic workers in managerial and professional occupations in foreign labor-intensive industries. The complementary effect becomes evident when all industries are considered in the model. 

Hayase, Yasuko  

"Japanese Foreign Direct Investment, Employment and International Migration in East Asia", 10 (3-4) p. 535-558, 2001.

Unlike other developed countries, Japan achieved high economic growth without relying on foreign workers to supplement domestic labor. The appreciation of the yen against the US dollar after the Plaza Agreement in 1985 triggered the inflows of foreign workers and outflows of Japanese foreign direct investment. The increase of Japanese foreign direct investment  to East Asia played an important role in the region's economic development. In particular, the relocation of labor-intensive operations and the transfer of highly developed technology contributed to job creation, which might have helped reduce migration pressure from East Asia to Japan. The importation of foreign labor in Japan has stalled with recent high unemployment rates. The Japanese government should make a concrete and transparent national policy on foreign labor as the Japanese population continues to age and shrink.

Martin, Philip and Manuel Garcia y Griego

"Migration, Development and US Labor Markets: The Mexican-US Case," 10 (3-4) p. 559-583, 2001.

This paper explores economic and technological changes and the evolution of labor markets in sending and receiving countries, with an emphasis on developments in a major emigration country, Mexico, and the impacts of migrants from Mexico and Latin America on the labor markets of  Canada and the US. There are four major conclusions. Firstly, while immigrant workers are important in many industries, occupations, and areas, no major US industry or occupation is dependent on foreign-born or Mexican-born workers. Secondly, Mexican-born workers tend to be near the low end, often filling jobs that would be eliminated or modified by technology if wages rose. Thirdly, the short- and long-run effects of trade and investment on migration may be very different, producing a migration hump in the short-term that may increase migration flows before they decline. Finally, current demographic changes in Mexico’s labor market can lead to a near-term decline in the volume of unauthorized migration to the United States even if emigration probabilities continue to rise moderately. Mexico, the US, and Canada are on the path toward closer economic integration that could soon reduce permanent or settler migration, even as temporary or sojourner migration increases for business and other purposes. The reduction in emigration pressure in Mexico may be noticeable sooner than is commonly realized for demographic and economic reasons. The policy challenge is to do no harm, to avoid policies that produce unintended negative consequences or that prolong Mexican-US unauthorized migration during the transition.

Bedford, Richard, Elsie Ho and Jacqueline Lidgard

"Immigration Policy and New Zealand’s Development into the 21st Century: Review and Speculation," 10 (3-4) p. 585-616, 2001.

This article reviews the impacts of changes in immigration policy since the 1980s on New Zealand’s population, with particular reference to the labor market, and discusses recent initiatives in strengthening policies for New Zealand’s development in the 21st century. The policy objectives of encouraging the immigration of highly skilled people and those with capital to invest in business development initially drew favorable response, especially from Hong Kong, Taiwan and Korea. However, the actual experiences of migrants in the New Zealand labor market and business environment were much less positive. Immigrants from Asian countries were found to have high levels of unemployment. Another concern is the emigration of skilled people from New Zealand. The government has undertaken a review of immigration policies and is supporting a longitudinal study of immigrant experiences. The final section speculates on prospects for immigration and the labor force into the 21st century, bearing in mind the evolving immigration policy environment.