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There is an ongoing argument in most industrialised countries about the influx of foreign workers and its effect on the local economy. But the sociologists John Gibson and David McKenzie have looked on the issue from the other side. In a recent research, they have examined the effect from the labour of the so-called Gastarbeiter (guest workers) on their own societies. And it turns out this effect is really significant.

The research includes observations on 450 households in the Pacific nations of Tonga and Vanuatu, and the way the work abroad of a member (or members) of those households has affected the program for seasonal employment in New Zealand. This 7-month program guarantees that it would not damage the local work force, that the firms would pay their foreign workers the salaries that are usual for their own countries, and that they would not remain in New Zealand permanently. The employers are also obliged to pay the expenses for returning the workers home.

With these conditions, the benefits for the countries generating this labour force turn out to be significant. The income per capita in the households of the Gastarbeiter has increased by 39% on average, compared to all the rest. The number of families who have sent their kids to good schools has increased noticeably as well. The positive effect has been much bigger than the one from just sending direct financial aid and also bigger than providing micro-crediting. What could be called a social experiment shows that the best way to help an economically vulnerable country is to create incentive for hiring seasonal guest workers.

How this affects the host country is a separate issue though, and much more controversial. In New Zealand's case it's a win-win, because it has brought more benefits than harm. The country periodically feels a shortage of labour force, especially during summer season.  (Cross-posted to [livejournal.com profile] talk_politics).

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