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Estimating Earnings Losses of Migrant Workers Due to COVID-19

Author

Listed:
  • Manolo I. Abella

    (ILO International Migration Programme
    World Bank-KNOMAD Labour Migration)

  • S. K. Sasikumar

    (V.V. Giri National Labour Institute)

Abstract

While the wide-ranging impact of COVID-19 on incomes and livelihoods of people around the world will take some time to become known and understood, it is already clear that those who are in manual, mostly low-wage, occupations are among the worst-hit workers. This paper uses data from a sample survey of migrant workers to come up with useful parameters for estimating the potential losses from possible retrenchment of migrant workers due to the pandemic. The paper employs a simple estimation model using parameters derived from data collected from a KNOMAD-ILO survey of low-skilled migrant workers in the India–Saudi Arabia migration corridor, conducted during 2016–2017. An important finding is that the aggregate losses that low-skilled Indian workers in Saudi Arabia are likely to incur due to COVID-19-related retrenchment may be as high as 21% of their expected earnings. Adding recruitment costs can push up their losses to 36% of expected or potential earnings, while the aggregate remittances to their families could drop by USD 2 billion.

Suggested Citation

  • Manolo I. Abella & S. K. Sasikumar, 2020. "Estimating Earnings Losses of Migrant Workers Due to COVID-19," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 921-939, December.
  • Handle: RePEc:spr:ijlaec:v:63:y:2020:i:4:d:10.1007_s41027-020-00281-y
    DOI: 10.1007/s41027-020-00281-y
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    Cited by:

    1. Bhupesh Gopal Chintamani & Lalitagauri Kulkarni, 2023. "Determinants and Effects of International Remittances: Evidence from Ratnagiri District of Rural Maharashtra," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(2), pages 617-637, June.

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