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

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  • Asif Islam
  • Amparo Palacios Lopez
  • Mohammad Amin

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.

Suggested Citation

  • Asif Islam & Amparo Palacios Lopez & Mohammad Amin, 2019. "Decomposing the Labour Productivity Gap between Migrant-Owned and Native-Owned Firms in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 55(9), pages 2065-2082, September.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:9:p:2065-2082
    DOI: 10.1080/00220388.2018.1520215
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    Cited by:

    1. Amin,Mohammad, 2021. "Does Competition from Informal Firms Hurt Job Creation by Formal Firms ? Evidence Using Firm-Level Survey Data," Policy Research Working Paper Series 9515, The World Bank.
    2. Amin,Mohammad & Motta,Vctor, 2021. "The Impact of Corruption on SMEs’ Access to Finance : Evidence Using Firm-Level Survey Data fromDeveloping Countries," Policy Research Working Paper Series 9812, The World Bank.
    3. Amin,Mohammad & Soh,Yew Chong, 2020. "Does Corruption Hurt Employment Growth of Financially Constrained Firms More ?," Policy Research Working Paper Series 9286, The World Bank.
    4. Mohammad Amin & Yew Chong Soh, 2022. "Financial constraints and the impact of corruption on employment growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 612-635, April.
    5. Usman Khalid & Mohammad Amin, 2023. "The impact of ethnic fractionalisation on labor productivity: Does firm size matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 2213-2249, October.
    6. Amin,Mohammad, 2021. "Does Competition from Informal Firms Impact R&D by Formal SMEs ? Evidence Using Firm-Level Survey Data," Policy Research Working Paper Series 9868, The World Bank.

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