Research Article
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THE IMPACT OF INTERNATIONAL LABOR FORCE ON LABOR FORCE PARTICIPATION, GDP AND PRODUCTIVITY

Year 2022, Volume: 3 Issue: 1, 75 - 84, 30.03.2022
https://doi.org/10.52835/19maysbd.1023850

Abstract

In today’s world, there are many reasons behind labor migration, however, better living conditions are still the main motives. A new language, a new life in a foreign country, adaptation to the social and economic life, livelihood costs, loss of wages during a new job search are the main disadvantages that migrant labor can experience. The aim of this study is to reveal the impact of the international labor force on labor force participation, gross domestic product (GDP), and productivity in Turkey. The research method is a multivariate regression model, estimated in Stata. The number of foreign workers who are registered in the Foreigners Automation System and who have work permits is taken into account. According to the statistics, they are generally employed in low-skilled positions. The results provided that the foreign workers have a limited impact on the labor force participation, GDP, and productivity in the Turkish labor market. But in the last years, the education status of the foreign workers has been increasing which can pose a rise in productivity and in GDP in the future. We think that foreign labor workers are crucial forces both for host countries and organisations. Therefore, revealing other effects of foreign workers on the economy will contribute to both literature and practice.

References

  • Ashton, C., & Morton, L. (2005). Managing talent for competitive advantage. Strategic HR Review, 4(5): 28–31.
  • Castles, S. (2000). Ethnicity and Globalisation. London: Sage.
  • Chernyak, O. & Chernyak Y, (2019), Modern trends of the international labor force migration. In SHS Web of Conferences, 65, 09001.
  • Chinhui, J. and Simon Potter (2006). Changes in Labor Force Participation in the United States. Journal of Economic Perspectives, 20(3), 27–46.
  • Choi, J.G., Woods, R.H. & Murrmann, S. K. (2000). International labor markets and the migration of labor forces as an alternative solution for labor shortages in the hospitality industry. International Journal of Contemporary Hospitality Management, 12(1), 61–67.
  • Clark, P. F., Stewart, J. B., & Clark, D. A. (2006). The globalization of the labor market for health-care professionals. International Labor Review, 145: 37–64.
  • Farndale, E., Scullion, H., & Sparrow, P. (2010). The role of the corporate HR function in global talent management. Journal of World Business, 45(2), 161–168. doi:10.1016/j.jwb.2009.09.012
  • Fellini, I.; Ferro, A.; & Fullin, G. (2007). Recruitment processes and labour mobility: the construction industry in Europe. Work, Employment & Society, 21(2), 277–298.
  • Friedberg, R.M. & Hunt, J. (1995). The Impact of Immigrants on Host Country Wages, Employment and Growth. The Journal of Economic Perspectives, 9(2), 23-44.
  • International Labour Office (2010). International labour migration: A rights-based approach. Switzerland. ILO Publications.
  • ILO, OECD & World Bank (2015). Joint paper for G20 Labour and Employment Ministers’ Meeting Ankara, Turkey, 3-4 September 2015.
  • Isa, M. A. M., Razak, M. F. A., Mohamed, S., Ibrahim, W. M. F. W., Noh, M. K. A., Nasrul, F., & Hassan, S. S. (2021). Economic Determinants and Foreign Labour Force: Evidence from Malaysia. International Journal of Academic Research in Business and Social Sciences, 11(13), 1023-1034.
  • Joyce P. J. (1999). Labor force participation. The Quarterly Review of Economics and Finance, 39, 597–610. Jordaan, J.A. (2017). Foreign workers and productivity in an emerging economy: The case of Malaysia. Rev Dev Econ. 2017;1–26. DOI: 10.1111/rode.12334
  • Juhn, C., Potter, S. (2006). Changes in Labor Force Participation in the United States. Journal of Economic Perspectives, 20(3), 27–46. Lordoğlu, K. (2007). Türkiye’deki Çalışma Hayatının bir parçası olarak Yabancı Çalışanlar. Çalışma ve Toplum, 3, 11-31.
  • Longhi, S., Nijkamp, P.& Poot, J. (2006). The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis. IZA Discussion Paper, 2044.
  • Maria Loredana Popescu, Ovidiu Andrei Cristian Buzoianu, Victor Troaca & Valentin Lazar (2020). Analysis of the Impact of Globalization on the Global Labor Force SHS Web of Conferences 9, 2 (2021), Globalization and its Socio-Economic Consequences 2020 7051 https://doi.org/10.1051/shsconf/20219207051.
  • Massey, D.S. (1998). Contemporary Theories of International Migration, in D.S. Massey et al. (Ed). Worlds in Motion: Understanding International Migration.
  • Novicevic, M. M., & Harvey, M. (2001). The changing role of the corporate HR function in global organizations of the twenty-first century. International Journal of Human Resource Management, 12: 1251–1268.
  • Noor, Z.M., Isa, N., Said, R. & Jalil, S.A. (2011). The Impact of Foreign Workers on Labour Productivity in Malaysian Manufacturing Sector. International Journal of Economics and Management 5(1), 169-178.
  • OECD (2021a), Foreign-born unemployment (indicator). doi: 10.1787/ba5d2ce0-en (Accessed on 07 November 2020). https://data.oecd.org/migration/foreign-born-unemployment.htm
  • OECD (2021b), Labour force participation rate (indicator). doi: 10.1787/8a801325-en (Accessed on 07 September 2020) https://data.oecd.org/emp/labour-force.htm#indicator-chart
  • OECD (2021c), Gross domestic product (GDP) (indicator). doi: 10.1787/dc2f7aec-en (Accessed on 07 September 2020) https://data.oecd.org/gdp/gross-domestic-product-gdp.htm
  • OECD (2021d), Labour productivity and utilisation (indicator). doi: 10.1787/02c02f63-en (Accessed on 07 September 2020). https://data.oecd.org/lprdty/labour-productivity-and-utilisation.htm
  • OECD (2021e), Labour force (indicator). doi: 10.1787/ef2e7159-en (Accessed on 07 September 2020). https://data.oecd.org/emp/labour-force.htm#indicator-chart
  • Peri, G. (2010). The Effect of Immigration on Productivity: Evidence from US States. National Bureau of Economic Research (NBER) Working Paper No. 15507 online.
  • Petty, S. W. (1676 [1899]). Political arithmetic. In C. Henry Hull (Ed.). The economic writings of Sir William Petty (pp. 233–313). Cambridge, UK: Cambridge University Press.
  • Piore, M. (1979). Birds of Passage: Migrant Labour and Industrial Societies. Cambridge: Cambridge University Press.
  • Piore, M. (1980). United States Immigration Policy and Unsanctioned Migrants: Comment. Industrial and Labor Relations Review, 33(3), 312–14.
  • Salt, J., & Millar, J. (2006). International migration in interesting times: The case of the UK. People and Place, 14: 14–25.
  • Salvatore, D. (1996). International Economics.6th Ed. New Jersey: Prentice Hall.
  • Sassen, S. (1988). The Mobility of Labour and Capital: A Study in International Investment and Labour Flow. Cambridge: Cambridge University Press.
  • Scullion, H., & Starkey, K. (2000). In search of the changing role of the corporate human resource function in the international firm. International Journal of Human Resource Management, 11: 1061–1081.
  • Seyidoğlu, H. (2013). Uluslararası İktisat. 19th Ed. İstanbul: Güzem Can Yayınları.
  • Smith, A. (1979 [1776]). An inquiry into the nature and causes of the wealth of nations. Oxford: Clarendon Press.
  • Sparrow, P. R., Brewster, C., & Harris, H. (2004). Globalizing human resource management. London, UK: Routledge.
  • Şen, S. (2016). Multivariate Anova (Manova). https://sedatsen.files.wordpress.com/2016/11/11-sunum.pdf
  • Tipayalai, K. (2020). Impact of international labor migration on regional economic growth in Thailand. Journal of Economic Structures, 9(15), 1-9.
  • World Travel and Tourism Council (WTCC) (1995). Travel and Tourism, Progress and Priorities.

ULUSLARARASI İŞGÜCÜNÜN VERİMLİLİK, MİLLİ GELİR VE İŞGÜCÜ KATILIM ORANINA ETKİSİ

Year 2022, Volume: 3 Issue: 1, 75 - 84, 30.03.2022
https://doi.org/10.52835/19maysbd.1023850

Abstract

Günümüz dünyasında işgücü göçünün arkasında birçok neden vardır, ancak daha iyi yaşam standartları ve daha yüksek ücretler hala ana güdüler olarak sayılmaktadır. Ancak, yeni bir dil, yabancı bir ülkede yeni bir yaşam, sosyal ve ekonomik hayata uyum, geçim maliyetleri, yeni bir iş arama sırasında ücret kaybı, göçmen işçinin yaşayabileceği başlıca dezavantajlar olarak sayılabilir. Bu çalışmanın amacı, Türkiye’deki yabancı işgücünün gayrisafi yurt içi hasıla (GSYH), işgücüne katılım ve verimlilik üzerindeki etkisini araştırmaktır. Yabancılar Otomasyon Sistemine kayıtlı ve çalışma izni olan yabancı işçi sayısı dikkate alınmıştır. Kayıt dışı yabancı işçiler analize katılamamıştır. Elde edilen sonuçlara göre, yabancı işçilerin Türk işgücü piyasasında işgücüne katılım, GSYH ve verimlilik üzerinde sınırlı bir etkiye sahip olduğunu göstermiştir. Genellikle düşük vasıflı pozisyonlarda istihdam edilmişlerdir. Ancak son yıllarda, Türkiye’ye gelen yabancı işçilerin eğitim durumu iyileşmekte ve ilerleyen yıllarda verimlilik ve GSYİH'de artış sağlayabileceği düşünülmektedir.

References

  • Ashton, C., & Morton, L. (2005). Managing talent for competitive advantage. Strategic HR Review, 4(5): 28–31.
  • Castles, S. (2000). Ethnicity and Globalisation. London: Sage.
  • Chernyak, O. & Chernyak Y, (2019), Modern trends of the international labor force migration. In SHS Web of Conferences, 65, 09001.
  • Chinhui, J. and Simon Potter (2006). Changes in Labor Force Participation in the United States. Journal of Economic Perspectives, 20(3), 27–46.
  • Choi, J.G., Woods, R.H. & Murrmann, S. K. (2000). International labor markets and the migration of labor forces as an alternative solution for labor shortages in the hospitality industry. International Journal of Contemporary Hospitality Management, 12(1), 61–67.
  • Clark, P. F., Stewart, J. B., & Clark, D. A. (2006). The globalization of the labor market for health-care professionals. International Labor Review, 145: 37–64.
  • Farndale, E., Scullion, H., & Sparrow, P. (2010). The role of the corporate HR function in global talent management. Journal of World Business, 45(2), 161–168. doi:10.1016/j.jwb.2009.09.012
  • Fellini, I.; Ferro, A.; & Fullin, G. (2007). Recruitment processes and labour mobility: the construction industry in Europe. Work, Employment & Society, 21(2), 277–298.
  • Friedberg, R.M. & Hunt, J. (1995). The Impact of Immigrants on Host Country Wages, Employment and Growth. The Journal of Economic Perspectives, 9(2), 23-44.
  • International Labour Office (2010). International labour migration: A rights-based approach. Switzerland. ILO Publications.
  • ILO, OECD & World Bank (2015). Joint paper for G20 Labour and Employment Ministers’ Meeting Ankara, Turkey, 3-4 September 2015.
  • Isa, M. A. M., Razak, M. F. A., Mohamed, S., Ibrahim, W. M. F. W., Noh, M. K. A., Nasrul, F., & Hassan, S. S. (2021). Economic Determinants and Foreign Labour Force: Evidence from Malaysia. International Journal of Academic Research in Business and Social Sciences, 11(13), 1023-1034.
  • Joyce P. J. (1999). Labor force participation. The Quarterly Review of Economics and Finance, 39, 597–610. Jordaan, J.A. (2017). Foreign workers and productivity in an emerging economy: The case of Malaysia. Rev Dev Econ. 2017;1–26. DOI: 10.1111/rode.12334
  • Juhn, C., Potter, S. (2006). Changes in Labor Force Participation in the United States. Journal of Economic Perspectives, 20(3), 27–46. Lordoğlu, K. (2007). Türkiye’deki Çalışma Hayatının bir parçası olarak Yabancı Çalışanlar. Çalışma ve Toplum, 3, 11-31.
  • Longhi, S., Nijkamp, P.& Poot, J. (2006). The Impact of Immigration on the Employment of Natives in Regional Labour Markets: A Meta-Analysis. IZA Discussion Paper, 2044.
  • Maria Loredana Popescu, Ovidiu Andrei Cristian Buzoianu, Victor Troaca & Valentin Lazar (2020). Analysis of the Impact of Globalization on the Global Labor Force SHS Web of Conferences 9, 2 (2021), Globalization and its Socio-Economic Consequences 2020 7051 https://doi.org/10.1051/shsconf/20219207051.
  • Massey, D.S. (1998). Contemporary Theories of International Migration, in D.S. Massey et al. (Ed). Worlds in Motion: Understanding International Migration.
  • Novicevic, M. M., & Harvey, M. (2001). The changing role of the corporate HR function in global organizations of the twenty-first century. International Journal of Human Resource Management, 12: 1251–1268.
  • Noor, Z.M., Isa, N., Said, R. & Jalil, S.A. (2011). The Impact of Foreign Workers on Labour Productivity in Malaysian Manufacturing Sector. International Journal of Economics and Management 5(1), 169-178.
  • OECD (2021a), Foreign-born unemployment (indicator). doi: 10.1787/ba5d2ce0-en (Accessed on 07 November 2020). https://data.oecd.org/migration/foreign-born-unemployment.htm
  • OECD (2021b), Labour force participation rate (indicator). doi: 10.1787/8a801325-en (Accessed on 07 September 2020) https://data.oecd.org/emp/labour-force.htm#indicator-chart
  • OECD (2021c), Gross domestic product (GDP) (indicator). doi: 10.1787/dc2f7aec-en (Accessed on 07 September 2020) https://data.oecd.org/gdp/gross-domestic-product-gdp.htm
  • OECD (2021d), Labour productivity and utilisation (indicator). doi: 10.1787/02c02f63-en (Accessed on 07 September 2020). https://data.oecd.org/lprdty/labour-productivity-and-utilisation.htm
  • OECD (2021e), Labour force (indicator). doi: 10.1787/ef2e7159-en (Accessed on 07 September 2020). https://data.oecd.org/emp/labour-force.htm#indicator-chart
  • Peri, G. (2010). The Effect of Immigration on Productivity: Evidence from US States. National Bureau of Economic Research (NBER) Working Paper No. 15507 online.
  • Petty, S. W. (1676 [1899]). Political arithmetic. In C. Henry Hull (Ed.). The economic writings of Sir William Petty (pp. 233–313). Cambridge, UK: Cambridge University Press.
  • Piore, M. (1979). Birds of Passage: Migrant Labour and Industrial Societies. Cambridge: Cambridge University Press.
  • Piore, M. (1980). United States Immigration Policy and Unsanctioned Migrants: Comment. Industrial and Labor Relations Review, 33(3), 312–14.
  • Salt, J., & Millar, J. (2006). International migration in interesting times: The case of the UK. People and Place, 14: 14–25.
  • Salvatore, D. (1996). International Economics.6th Ed. New Jersey: Prentice Hall.
  • Sassen, S. (1988). The Mobility of Labour and Capital: A Study in International Investment and Labour Flow. Cambridge: Cambridge University Press.
  • Scullion, H., & Starkey, K. (2000). In search of the changing role of the corporate human resource function in the international firm. International Journal of Human Resource Management, 11: 1061–1081.
  • Seyidoğlu, H. (2013). Uluslararası İktisat. 19th Ed. İstanbul: Güzem Can Yayınları.
  • Smith, A. (1979 [1776]). An inquiry into the nature and causes of the wealth of nations. Oxford: Clarendon Press.
  • Sparrow, P. R., Brewster, C., & Harris, H. (2004). Globalizing human resource management. London, UK: Routledge.
  • Şen, S. (2016). Multivariate Anova (Manova). https://sedatsen.files.wordpress.com/2016/11/11-sunum.pdf
  • Tipayalai, K. (2020). Impact of international labor migration on regional economic growth in Thailand. Journal of Economic Structures, 9(15), 1-9.
  • World Travel and Tourism Council (WTCC) (1995). Travel and Tourism, Progress and Priorities.
There are 38 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Articles
Authors

Özlem Toplu Yılmaz 0000-0001-5335-8370

Hande Özek 0000-0002-1374-8398

Publication Date March 30, 2022
Submission Date January 21, 2022
Acceptance Date February 14, 2022
Published in Issue Year 2022 Volume: 3 Issue: 1

Cite

APA Toplu Yılmaz, Ö., & Özek, H. (2022). THE IMPACT OF INTERNATIONAL LABOR FORCE ON LABOR FORCE PARTICIPATION, GDP AND PRODUCTIVITY. 19 Mayıs Sosyal Bilimler Dergisi, 3(1), 75-84. https://doi.org/10.52835/19maysbd.1023850