Table 1

Rationales for Temporary Labor Migration Programs

Rationale Typical Origin/Goal Examples
1. Labor shortages Labor supply shrinks and does not meet demand Agriculture, as local workers find better nonfarm job options, and/or employers fail to raise wages high enough to keep and attract new workers
Labor demand rises faster than labor supply IT & health care: demand increases & training required, but wages fail to rise accordingly
Labor demand rises, supply constrained by low wages In-home care givers whose wages are financed by taxes
2. Manage inevitable migration German seasonal worker programs for Poles in 1990s German government did not want to erect new walls after 1989
EU Mobility Partnerships Provide aid and some legal migration slots in exchange for helping to reduce irregular
3. Cross-border commuting National borders divide natural labor markets Malaysia-Singapore, many borders in Europe
4. Youth exchange and foreign students Facilitate cultural, scientific, education exchanges that permit employment in destination country Exchange visitors, working holiday makers, traniees, foreign students
5. Intra-corporate transferees (ICT) Provide mobility between countries for managers, executives, and workers of multinational companies with special knowledge of the firm’s operations GATS commitments to allow ICTs; L-1 visa in US; ICTs in UK
6. Trade Agreements Trade agreements that contain provisions that allow service providers to move between countries, either as intra-corporate transferees, business visitors, or through other types of work visas. WTO/GATT commitments, EU free movement, NAFTA TN visa
7. Investor programs Allow foreigners who invest in another country to live and work while managing their investments, sometimes with the help of key employees who accompany them. E-1 and E-2 nonimmigrant visa in the US.
Economic Policy Institute

Source: See text

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