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

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 labor productivity of migrant-owned firms versus native-owned firms in 20 African economies using firm-level data. We find that labor 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 labor 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 labor productivity gap.

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Bibliographic Details
Main Authors: Islam, Asif, Palacios Lopez, Amparo, Amin, Mohammad
Format: Journal Article biblioteca
Published: Taylor and Francis 2018-09-18
Subjects:INTERNATIONAL MIGRATION, LABOR PRODUCTIVITY, DECOMPOSITION, FIRM PRODUCTIVITY, BUSINESS ENVIRONMENT,
Online Access:http://hdl.handle.net/10986/32083
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