ECLM Project
How Immigrants Contribute to Kyrgyzstan's Economy
A joint report by the OECD Development Centre and the International Labour Organisation (ILO), How Immigrants contribute to Kyrgyzstan’s economy, demonstrates the economic contribution of these immigrants and makes recommendations regarding the enhancement of this contribution.
Since its independence from the Soviet Union, Kyrgyzstan has been known as an emigration country. However, around 4% of the population was born outside the current national territory and the country attracts new immigrants. A joint report by the OECD Development Centre and the International Labour Organisation (ILO), How Immigrants contribute to Kyrgyzstan’s economy, demonstrates the economic contribution of these immigrants and makes recommendations to enhance this contribution.
The report looks at three dimensions of immigrant workers’ contribution: labour markets, economic growth and public finance. According to the findings, foreign-born and native-born workers integrate differently in the labour market. The share of the working-age population not participating in the labour market is higher for the foreign-born than for the native-born, which is partially explained by the high share of elderly immigrants. Unemployment is also more common for foreign- than native-born workers. Employed immigrants are more frequently employees than self-employed and on average earn more than employed native-born workers.
The contribution of immigrants to the Kyrgyz economy could be further enhanced by improving existing policies based on the following recommendations:
• Integration gaps need to be identified and addressed. Providing language courses, for example, could ease the integration of recent immigrants that do not speak one of the local languages.
• The costs and benefits of immigration policies could be re-assessed. For example, a pilot programme could evaluate whether the benefits of the work-permit system to Kyrgyz-born workers exceed the costs to companies and the Kyrgyz administration. Similarly, the recent change in requirements for investor visas could be evaluated.
• Enhancing the co-ordination between ministries and national and local authorities would allow Kyrgyzstan to develop a coherent policy agenda that maximises the development benefits of immigration.
The report looks at three dimensions of immigrant workers’ contribution: labour markets, economic growth and public finance. According to the findings, foreign-born and native-born workers integrate differently in the labour market. The share of the working-age population not participating in the labour market is higher for the foreign-born than for the native-born, which is partially explained by the high share of elderly immigrants. Unemployment is also more common for foreign- than native-born workers. Employed immigrants are more frequently employees than self-employed and on average earn more than employed native-born workers.
The contribution of immigrants to the Kyrgyz economy could be further enhanced by improving existing policies based on the following recommendations:
• Integration gaps need to be identified and addressed. Providing language courses, for example, could ease the integration of recent immigrants that do not speak one of the local languages.
• The costs and benefits of immigration policies could be re-assessed. For example, a pilot programme could evaluate whether the benefits of the work-permit system to Kyrgyz-born workers exceed the costs to companies and the Kyrgyz administration. Similarly, the recent change in requirements for investor visas could be evaluated.
• Enhancing the co-ordination between ministries and national and local authorities would allow Kyrgyzstan to develop a coherent policy agenda that maximises the development benefits of immigration.