Summary of the International Labour Organization Report on the Migrant Pay Gap

Key Findings

  • Global Scope: Analysis of the migrant pay gap includes data from 49 countries (33 High Income Countries (HICs), 16 Low and Middle-Income Countries (LMICs)), covering about 25% of global wage employees.

  • Average Earnings:

    • Migrant workers in HICs earn approximately 12.6% less than nationals.
    • In LMICs, migrant workers earn about 17.3% more than nationals.
  • Wage Variations:

    • Notable disparities exist, with extreme cases, e.g., migrant workers in Cyprus earn 42.1% less than nationals.
  • Gender Pay Gap:

    • Women migrant workers face a 20.9% pay gap compared to male nationals, which is larger than the overall gender pay gap in HICs (16.2%).
    • Migrant care workers experience a 19.6% wage gap relative to non-migrant care workers.
  • Impact of COVID-19: Migrant workers were significantly affected by employment losses and reduced wages during the pandemic.

  • Underemployment: Higher-skilled migrant workers often occupy lower-skilled jobs and face issues like skills mismatch and inadequate recognition of their qualifications.

  • Explanatory Factors: Approximately 10% of the migrant pay gap in HICs is unexplained by observable characteristics, indicating potential discrimination in wages.

Policy Recommendations

  • Equity Measures: Implement policies ensuring equal pay for work of equal value, focusing on the unexplained wage gaps.
  • Gender Considerations: Special attention should be given to reduce wage disparities among migrant women.
  • Labor Market Integration: Enhance labor integration measures and skills recognition systems to match migrants with suitable jobs.
  • Harmonization of Policies: Align labor migration policies with labor market needs to promote fair wages.

Conclusion

  • The report highlights a persistent and complex migrant pay gap, necessitating targeted action to address wage inequalities, particularly for women and migrant care workers, and to ensure equitable labor market policies.