- According to the International Labor Organization, the use of migrant labor force has shown an increasing trend over the past decade. This indicates that migrant workers are potentially becoming a vital factor affecting the world’s economy and industries. Since labor productivity is important indicator of economic growth and prosperity, it is important to understand the contribution of foreign workers to domestic productivity. This paper studies the effect of foreign workers on labor force productivity by analyzing data on migrant labor proportions and skill levels to determine which affects labor productivity in Germany, Spain, the United Kingdom and the United States. The data are analyzed through the use of ordinary least squares regression with the goal of determining how foreign labor affects labor productivity. The result from the regression analysis concludes that the proportion of foreign workers that are more highly skilled is associated with an increase labor productivity within a country.
Key Words: Labor Productivity, migrant workers, occupations, skill levels, migration policies