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The length of stay of foreign workers in Malta

Ian Borg ()

No PP/01/2019, CBM Policy Papers from Central Bank of Malta

Abstract: The length of stay of foreign workers in the Maltese labour market is short. Indeed, using longitudinal administrative data we find that around a quarter of foreigners engaged in the Maltese labour market exit within the first year of engagement, and around half exit between one and two years later. In general, we find that EU nationals, younger individuals, and lower-skilled foreign workers exhibit a relatively shorter length of stay. Moreover, we find significant sectoral heterogeneity. In particular, smaller firms and the public administration, health, and education sector, exhibit better retention rates. The increasing reliance on a transient labour force poses a number of economic challenges. The short length of stay may limit economic assimilation and labour productivity growth. In addition, low retention rates generate additional strain on training and hiring costs. There are also important implications on the demand for public transport, private education and the rental market.

JEL-codes: J21 J6 O4 (search for similar items in EconPapers)
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Handle: RePEc:mlt:ppaper:0119