Ideas to Action:

Independent research for global prosperity

Expanding Labor Market Access for Refugees and Forced Migrants

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In general, low- and middle-income countries (LMICs) severely restrict refugees and forced migrants’ labor market access (LMA). But now, in countries such as Colombia, Ethiopia, Jordan, and Turkey, refugees and forced migrants are slowly gaining the formal right and opportunity to facilitate their own economic inclusion. Governments are granting these rights in part because they recognize the benefits of doing so, which include unlocking refugees and forced migrants’ economic contributions and attracting new investments in inclusive growth. They also recognize the limits of short-term humanitarian aid in the face of growing need and donor fatigue. The World Bank, UNHCR, ILO, Tent Partnership for Refugees, Refugee Self-Reliance Initiative, and many others have supported these efforts and continue to play a crucial role in sustaining forward momentum.

Despite advances, the vast majority of refugees and forced migrants in LMICs are still not formally allowed to work. As we showed recently, this restriction creates a wide range of costs and forgone benefits, including lower economic productivity for the host country, forgone tax revenues, and lower incomes and living standards for the refugees and forced migrants themselves.

To build on the progress to date, CGD and Refugees International (RI) are embarking on a joint initiative funded by the IKEA Foundation, Tent Partnership for Refugees, and Western Union Foundation to:

  •  generate evidence on the economic, social, and protection effects of increasing LMA;
  •  develop recommendations to maximize its benefits, particularly for women and vulnerable populations, and mitigate challenges for both refugees and forced migrants, and their host communities; and
  •  support efforts to mobilize the private sector to make the business case. Because of their unique role as market leaders and drivers of trade, investment, and innovation, businesses have an important (and currently underutilized) role in shaping policy and dialogue on LMA.

To find out more about the initiative, please contact Jimmy Graham at jgraham@cgdev.org.  

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Thomas Ginn
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