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Labor Migration in Asia LABOR MIGRATION IN ASIA Increasing the Development Impact of Migration through Finance and Technology LABOR MIGRATION IN ASIA Increasing the Development Impact of Migration through Finance and Technology © 2018 Asian Development Bank Institute, Organisation for Economic Co-operation and Development, and International Labour Organization All rights reserved. Published in 2018. Printed in the United Kingdom. ISBN 978-4-89974-091-9 (print) ADBI: 978-4-89974-092-6 (PDF)OECD: 978-92-6-428964-2 (PDF)ILO: 978-92-2-131569-8 (PDF) This publication was jointly prepared by the Asian Development Bank Institute (ADBI), the Organisation for Economic Co-operation and Development (OECD), and the International Labour Organization (ILO). The responsibility for opinions expressed and arguments employed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement or offi cial view by the Asian Development Bank Institute, International Labour Offi ce or Organisation for Economic Co-operation and Development, or their respective Board of Governors or the governments they represent, or their member countries or economies, of the opinions and arguments expressed in them. Neither ADBI, ILO, nor OECD guarantees the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory, city or geographic area, or by using the term “country” in this document, neither ADBI, ILO, nor OECD intend to make any judgments as to the legal or other status of any territory, city or area. This publication, as well as any data and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Reference to names of fi rms and commercial products and processes does not imply their endorsement by ADBI, ILO, or OECD and any failure to mention a particular fi rm, commercial product, or process is not a sign of disapproval. ADB recognizes “China” as the People’s Republic of China. Note: In this publication, “$” refers to US dollars. Asian Development Bank Institute Organisation for Economic Co-operation Kasumigaseki Building 8F and Development 3-2-5, Kasumigaseki, Chiyoda-ku 2, rue André Pascal Tokyo 100-6008, Japan 75775 Paris Cedex 16 www.adbi.org France www.oecd.org International Labour Organization Regional Offi ce for Asia and the Pacifi c United Nations Building, 11th Floor Rajdamnern Nok Avenue, P.O. Box 2-349 Bangkok 10200, Thailand www.ilo.org/asia CONTENTS Tables, Figures, and Box iv Foreword vi Acknowledgments vii 1 Trends in Labor Migration in Asia 1 Organisation for Economic Co-operation and Development 1.1 Introduction 1 1.2 How Asia Fits into Global Migration—Medium-Term Trends 1 1.3 Labor Migration Flows from Asia to Non-OECD Countries 3 1.4 Migration Flows from Asia to OECD Countries 7 1.5 Labor Market Situation of Asian Migrants in Settlement Countries and in Europe 11 1.6 International Mobility of Students to and from Asia 12 1.7 Remittance Flows to Asian Countries 15 1.8 Conclusion 22 2 Leveraging Remittance Technologies for Financial Inclusion in Asia 24 Aladdin D. Rillo and Judah J. Levine 2.1 Migration and Remittances in Asia: Recent Developments 24 2.2 Addressing the Issue of High Remittance Costs 28 2.3 Role of Remittance Technologies 29 2.4 How Can Digitalization Help? 35 iii 2.5 Policy Implications and Conclusion 37 3 Engaging the Diaspora and Migrant Workers for Home Country Development: Diaspora Finance and Remittances 46 Piyasiri Wickramasekara, Evalyn Tennant, and Patrick Taran 3.1 Introduction 46 3.2 Defi nitions and Methodology 47 3.3 Mapping the Asian Diaspora 49 3.4 Engaging the Diaspora 52 3.5 Policies on Remittances 57 3.6 Remittance-Backed Financial Products and Financial Products Tailored to Migrants or Family Members 60 3.7 Conclusions and Recommendations 63 4 Mobility of Indian IT Professionals in the World Economy: Patterns and Future Possibilities 71 Anthony P. D’Costa 4.1 Introduction 71 4.2 A Profi le of the Indian IT Industry 72 4.3 The International Movement of Indian IT Professionals to the OECD 76 4.4 Institutional Challenges to IT Professionals: The Japanese Case 81 4.5 Conclusion: Challenges to International Mobility? 85 Annexes 1 Economy-Specifi c Notes 89 2 Comparative Tables 110 TABLES, FIGURES, AND BOX TABLES 1.1 Outfl ows of Workers from Selected Asian Countries, 2007–2016 4 1.2 Flows of Workers to Gulf Cooperation Council Countries, 2016 5 1.3 Flows of Workers to ASEAN Countries, by Origin and Destination, 2015–2016 6 1.4 Top 15 Asian Countries of Origin for Migration to OECD Countries, 2005–2015 8 1.5 Top 15 OECD Destination Countries for Asian Migration, 2015 9 1.6 Labor Market Indicators for Native and Foreign-Born in the United States, Canada, Australia, New Zealand, and in the European OECD Countries 12 1.7 Remittances by Receiving Country, 2000–2016 17 1.8 Sources of Remittances Received by Asian Countries, 2016 20 1.9 Share of Remittances in Gross Domestic Product by Country, 2000–2016 21 2.1 Estimates and Projections for Remittance Flows to Developing Countries 26 3.1 Some Estimates of Asian Diaspora Populations 50 3.2 Stock Estimate of Overseas Filipinos (end of December 2013) 51 3.3 Diff erent Roles of the Diaspora 52 3.4 Foreign Direct Investment, Offi cial Development Assistance Received, and Personal Remittances 55 3.5 Remittance Data for Selected Asian Origin Countries, 2015 56 3.6 Infl ow of Personal Remittances into Pakistan, 2005–2016 58 iv 3.A1 Migrant Remittance Infl ows, 2000, and 2005–2016 70 4.1 India’s Changing Market Size in Information Technology 73 4.2 Growth and Changing Composition of India’s Information Technology Exports 73 4.3 Selected US Non-Immigrant Workers and Professionals (by visa category) 78 4.4 Top 25 H-1B Visa Sponsors in Fiscal Year 2016–17 79 4.5 Trends in United States H-1B Initial Petitions Approved, and in Australia 457 Visas Granted to Information Technology Workers 80 FIGURES 1.1 International Migrant Stock: The Role of Asia as a Destination and Origin Region 2 1.2 Share of Women among Migrants by Origin and Destination, 1990–2015 2 1.3 Total Outfl ows of Workers from Selected Asian Countries, 2007–2016 3 1.4 Share of Women among Labor Migrants, by Origin Country, 2016 or Latest Year, Selected Asian Countries 7 1.5 Migration Flows from Asia to OECD Countries, 2000–2015 7 1.6 H-1B Visas Issued by the United States, by Region of Origin, 2005–2016 10 1.7 Top 15 Asian Destination Countries for International Students, 2015 13 1.8 International Students in OECD Countries by Region of Origin, 2015 13 1.9 Students from Asia among International Students by OECD Country of Destination, by Level of Education, 2015 14 1.10 Share of Master’s and Doctoral Students among Tertiary International Students Enrolled in OECD Countries by Asian Country of Origin, 2014–2015 15 1.11 Remittances to Asia, 2000–2016 16 1.12 Share of Remittances, 2016 18 1.13 25 Main Sources of Remittances to Asia, 2013 and 2016 19 TABLES, FIGURES, AND BOX 2.1 International Migrant Stocks 25 2.2 Top Remittance Receivers in 2016 27 2.3 Remittances and Other Capital Flows in Developing Countries 27 2.4 Average Cost by Instrument Used to Fund a Remittance Transaction 30 2.5 Average Cost by Means of Disbursing the Funds for Remittance Transaction 30 2.6 Key Activities in the Remittances Process 31 2.7 Indicative Pain Points by Key Activity 32 2.8 Illustrative Considerations to Facilitate More Effi cient Remittances 33 2.9 Illustrative Send/Receive Propositions 36 2.10 Measures to Promote Remittance Technologies 39 4.1 The Changing Structure of the Indian Economy 75 4.2 Systems Integrator and the Japanese Supplier System 83 BOX 2.1 Promoting Financial Inclusion in Asia through Digital Finance 40 v FOREWORD mployment is the dominant impetus for migration in Asia, with workers moving to fi ll relative and absolute labor shortages and to fi nd decent work. In 2015, over 5 million Asians migrated, most to Ethe Gulf Cooperation Council (GCC) countries and to destinations in Southeast Asia and East Asia for work in elementary and medium-skilled manual occupations. While the demand in some sectors such as care, which is mainly done by women, is set to increase, compared to 2014, migration fl ows have dropped, in particular to the GCC. The fall in demand correlates with lower oil prices, more restrictive policies in certain destination countries, selective migration bans, and an increase in options at home in some countries of origin. Asia also continues to be a source for skilled workers. Of the top 10 origin countries in 2015 for immigration to Organisation for Economic Co-operation and Development (OECD) members, fi ve were Asian, with four of these involving skilled workers and students. Asia has also seen forced migration fl ows in 2015–2017, including from such countries as Afghanistan and Myanmar. Since 2011, the Asian Development Bank Institute and OECD have organized an annual roundtable on labor migration in Asia. Since 2013, the International Labour Organization has also participated, with the result being the joint publication of an annual report. The theme of this year’s report, the fi fth in the series and the product of the Asian Development Bank’s co-organizing the January 2017 conference in Manila, is “Using fi nance and technology to increase the development impact of migration.” Chapter 1 focuses on vi labor migration trends, while Chapter 2 looks at the interface between technology and remittances, with Chapter 3 looking more broadly at diaspora fi nance and remittances.
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