According to a recent report released by the World Bank, low-skilled Nigerians who migrated to the United States have experienced a significant increase in their earnings by 1,500 percent.
The World Development Report 2023: Migrants, Refugees, and Societies, which was released on the World Bank’s website on Tuesday, sheds light on the potential gains from migration for people who move from low to high-income countries.
The report suggests that although the absolute gains are larger for high-skilled workers than for low-skilled workers, low-skilled workers experience a multifold increase in their income as well. The report further notes that the potential gains are highest for people who move from low- to high-income countries.
The labor demand at the destination also shapes outcomes, and gains depend on migrants’ skills, gender, age, and language ability.
Nigeria is a major origin and destination for migrants, and the report notes that Nigeria is home to almost 1.3 million immigrants and is the origin of 1.7 million emigrants. The report also reveals that in Nigeria, households that receive remittances invest more in agrochemicals and planting materials, and their farms have larger yields.
However, the report also highlights some challenges that low-skilled migrants face. Migrants incur a range of expenses before their departure, from job information and job matching fees to regulatory compliance or documentation fees.
For low-skilled migration, these costs tend to be borne by the workers, thereby contravening the principles of fair recruitment. These costs tend to increase with the duration of contracts, and they limit the ability of many low-skilled workers to benefit from migration opportunities.
The report further notes that Nigeria and nine other countries account for more than two-thirds of the 59.1 million internally displaced persons, with about 3.2 million IDPs in Nigeria. The report highlights the need for policies that address displacement and forced migration, which can lead to significant social, economic, and political costs.
Despite the challenges faced by low-skilled migrants, the report underscores the potential gains from migration for individuals and societies. The report urges policymakers to address the root causes of displacement and forced migration and to create opportunities for safe, orderly, and regular migration.
