Decomposing the Labour Productivity Gap between Migrant-Owned and Native-Owned Firms in Sub-Saharan Africa

Asif Islam, Amparo Palacios Lopez and Mohammad Amin
Authors registered in the RePEc Author Service: Amparo Palacios-Lopez

Journal of Development Studies, 2019, vol. 55, issue 9, 2065-2082

Abstract: Migration studies have been primarily based on the movement of individuals from developing to developed economies, with a focus on the impact of migrants on host country wages. In this study we take a different angle by exploring the labour productivity of migrant-owned firms versus native-owned firms in 20 African economies using firm-level data. We find that labour productivity is 78 per cent higher in migrant-owned firms than native-owned firms. Using the Oaxaca-Blinder decomposition method we find that structural effects account for 80 per cent of the labour productivity gap. Returns to manager education largely explain the productivity advantage of migrant-owned firms over native-owned firms. Interactions with the government, access to finance, informality, and power outages are also considerable contributors to the labour productivity gap.

Date: 2019
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DOI: 10.1080/00220388.2018.1520215

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