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The length of stay of foreign workers in Malta

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  • Ian Borg

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.

Suggested Citation

  • Ian Borg, "undated". "The length of stay of foreign workers in Malta," CBM Policy Papers PP/01/2019, Central Bank of Malta.
    • Handle: RePEc:mlt:ppaper:0119
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    File URL: https://www.centralbankmalta.org/file.aspx?f=72312
    File Function: First version, 2019
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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