The report, “The World Development Report 2023: Migrants, Refugees, and Societies”, released on Tuesday, found that low-skilled workers who move from a society with high socioeconomic inequalities to a country with fewer inequalities and a lower wage gap between low and high-skilled workers earned higher earnings.
“The potential gains are highest for people who move from low- to high-income countries. The labour demand at the destination also shapes outcomes. Gains depend on migrants’ skills, gender, age, and language ability,” the report said. “Yemenis and Nigerians moving to the United States increase their earnings by about 15 times. The gains achieved by low-skilled workers are higher when they move from a society with high socioeconomic inequalities to a country with fewer inequalities and where the difference in wages between low- and high-skilled workers is lower.”
The report also said the high costs associated with low-skilled migration, including fees paid to agents, transportation costs, and pre-departure training expenses, limit the ability of workers to benefit from migration opportunities and go against the principles of fair recruitment.