Impact of Global Crisis on Asian Migrant Workers and their Families:

A Survey-based Analysis with a Gender Perspective

Guntur Sugiyarto Economics and Research Department/ADB. 30 July 2013, ADB Headquarters

Outline
Background and objectives Methodology Key findings Policy implications Next steps

Background
Global crises impacted Asian migration and remittances at different levels: global, country and household levels. Impact at household level: based on migrant household surveys in BAN, INO and PHI (ADB and IOM 2011). Results were presented already, but further analysis with more gender dimension was needed. Follow-up surveys with gender lens in 2012 in INO and PHI, where feminization of migration is very strong.

Main Objectives
Using gender lens:
Examine the trend and impact dynamics. Analyze the gender-differentiated impacts. Identify the coping mechanisms.

Unit of analysis: Migrant workers and migrant households.

Methodology
Analyzed gender-disaggregated data from

ADB-IOM survey in 2010 (first survey). Period covered: Oct 2008 to Sept 2009. Sample: 217 and 200 migrant households in INO and PHI. Revisit (second) survey in 2012 to collect more genderrelevant data. Period covered: 2009 to 2012. Re-sample: 100 households each in INO and PHI. Conducted FGDs and RTDs with migrant households, returning migrants and key informants.
Combined results of surveys and FGDs/RTDs in the analysis.

Impacts Examined
Impacts

Migrant Workers

Migrant Households

Earning and Remittance

Job and working condition

Coping Mechanism

Income and Expenditure

Employment and Job status

Coping Mechanism

General Findings ...

Crisis had limited impact on international migration and remittances at global and country levels. Migrants and Remittances proved to be resilient.

But the crisis affected men and women migrant workers and migrant households differently.
There seems a Macro-Micro mismatch and strong impact dynamics at the micro level.

Macro: Deployments and Remittances

Number of Deployed Migrant Workers, 2006-2011
1800 1600 1400
(US$ millions) 20.1

Remittances Flows, 20062011 (US$ million)

25

20
16.4 17.4 14.5 12.8

18.8

1200
('000 persons)

1000 800 600 400 200 0 2006 2007 2008 Indonesia 2009 2010 2011

15

10
5.6 6.0 6.5

6.6

6.7

6.7

0 2006 2007 2008 2009 Philippines 2010 2011

Philippines Indonesia

Migrant Earning
Related to education, skill and occupation. INO: Women mostly in domestic work and men in manufacturing and construction.

PHI: spread over various occupations (services, technical/professional, sea-based, construction and domestic work). Earning more than INO.
INO: monthly earnings fell by 15% and 4% for men and women migrants. PHI: monthly earnings of men & women increased slightly.

Average monthly earnings of migrants

Indonesia
6,000

Philippines
29

5,000

28

4,000 (Rph) (PhP)

27

3,000

26

2,000

25

1,000

24

0 Before Crisis First Period

23 Before Crisis First Period

Men

Women

Regression Analysis

Variables Migrant Household worker's Remittances income income abroad

0.0323 [0.332] -0.0397 [0.749] 0.3386*** [0.000] 0.0172 [0.661] 0.0579 [0.842] -0.0827 [0.331] 0.0446** [0.029] -0.0366 [0.719] 0.0332 [0.572]

Variables
Number of migrant worker's children Level of education of migrant worker Migrant worker's length of stay abroad Constant

Household Remittances income

-0.0253 [0.659] 0.2903*** [0.003] -0.0022 [0.510] -0.0274 [0.592] 0.0471 [0.624] 0.0098** [0.024]

Migrant worker's income abroad

-0.0412 [0.210] 0.2733*** [0.000] 0.0036 [0.396]

Household size Number of migrants in household Level of education of household head Sex of household head Knowledge of the global financial and economic crisis

0.2373* [0.094] 0.1347 [0.101]

-0.3236* [0.051] -0.0532 [0.543]

-0.0644 [0.485] 0.1908*** [0.001]

2.4662*** [0.000] 243 246

7.0252*** [0.000] 219

4.6098*** [0.000]

Observations

Sex of migrant worker

Age of migrant worker

-0.1665 [0.183]
0.0156** [0.038]

-0.2710** [0.032]
0.0032 [0.677]

-0.2664*** [0.002]
0.0061 [0.242]

R-squared 0.538
Robust pval in brackets *** p<0.01, ** p<0.05, * p<0.1

0.098

0.369

Working conditions
Working condition deteriorated, and more profound than impact on earning. INO migrants reported more deteriorating working conditions (60% compare to 15% for PHI). Factors: delays and withholding salaries, overtime loss, benefit reductions and wage cuts. Country and gender influence very strong.

Changes in Working Conditions

Indonesia
100%

Philippines
100% 80% Reduction of benefits

80%

60% (%)

Wage cuts Working hours reduction Overtime without pay (%)

60%

40%

Conditions improved Other

40%

20%

No change

20%

0%

0%

Men

Women

Total

Men

Women

Total

Impact on remittances
Remittance Dynamics
Remittances increased (in both survey periods), despite the adverse impacts on earning and working conditions. PHI remit more regularly than INO (may be due to Migrant household share in PHI already 25%, INO only 3%) Men remitted larger amount than women. PHI: men remitted 2.4 times more than women. INO: men remitted 1.2 times more than women. Women made more transactions to remit than men

Amount of monthly remittances ..

Indonesia
1900 1800 1700 25 1600

Philippines
35 30

('000 Rp)

('000 PhP)

1500 1400 1300

20 15 10

1200 1100 1000 Before crisis First period Second period Men Women Average 5 0 Before crisis First period Second period

Men

Women

Average

Remitting Frequency
PHI migrants remit more regularly than INO migrants. INO: women remit more regularly (monthly) than men. PHI: men remit more regularly than women.

Returning migrants
INO: accounted to 25% of household members. 50% and 25% of women and men received assistance from their employers

PHI: Very small, only 3% of household members with very few received assistance.

Reasons: premature termination and non-renewal of contracts.

More women reported facing difficulties after returning, including in finding a job.

Returning migrants
Indonesia
40 40

Philippines

30 (Number) 27

29

30 (Number)

24
20 18 20 13 11 21 14 9

20

10

9 5

11
6 5 2009

10
7 0

10 8
2 Before 2008 4 2 2010 4 0 2011 1 0 2012

0 Before 2008

0 2008

2010

2011

2012

0 2008

0 2009

Men

Women

Total

Returnees
INO

Most returnees found a job within 6 months. 25% and 15% of women and men returnees would like to work abroad again.
PHI

Mostly found a job in 6-10 months. 50% of them would like to work abroad again.

Intention to migrate of migrant family members and impact on work status

8% and 2% of INO and PHI household members intended to go abroad for employment, mostly women.

INO: Unemployed 50%. Wage, non-wage and vulnerable employments are 15%, 2% and 35% of households members. PHI: Unemployed 80%. Wage, non-wage and vulnerable employments are 15%, 1% and 5%.

Changes in work status

Since the crises: Reduced wage employment and increased vulnerable employment of household members. Women were more likely to be in vulnerable employment. More 10% of Filipino household members have joined the labor force, mostly men.

Work status of household members

Indonesia
A. Before the crisis
100% 80%
100% 80% 60%

Philippines

(%)

(%)
40%
20% 0%

60% 40% 20% 0%

Men

Women

Total

Men

Women

Total

B. Since the crisis

100% 80% 60% 100% 80%

(%)

40% 20% 0%

(%) Men Women Total

60%
40% 20% 0%

Men

Women

Total

Wage employee- full time/regular/permanent Wage employee casual/ temporary/part-time/contract Self-employed (own account) Unpaid family worker

Migrant Households Economic Condition

INO: Women-headed households tend to have lower income or expenditure, contrary to the PHI.

INO: 20% households experienced deterioration in 1st period and further deteriorated in 2nd period.
PHI: 1st period 15% a deteriorated, 40% improved. 2nd period, 50% improved.

The impact mostly felt through rising food prices.

(Number) (Number)

10

20

30

50

40

52 2 14 14 2
Moderately improved

Greatly improved

Indonesia

Moderately improved

13 4
Slightly improved

Slightly improved

A. First Period (2008-2009)

No change/the same
No change/the same

B. Second Period (2010-2012)

5
Greatly improved

Slightly deteriorated

Moderately deteriorated

20 10
(Number)

Greatly deteriorated Not specified/no answer

50 40 30 20 10 0 2 11 1 37 33 7 5 10 7
Slightly deteriorated

0
13
Greatly deteriorated Not specified/no answer

8
0

1 10 20 30 2 3 4 17 8 16 19 17 3 2 5 1 2 1

Moderately deteriorated

21 10
(Number)

10 0

20

30

Greatly improved

Moderately improved Slightly improved No change/the same Slightly deteriorated Moderately deteriorated

Migrant Household Economic Conditions

Women

Greatly deteriorated

1 2
Greatly improved

5
12 7
Slightly improved

Moderately improved

Philippines

14 19

No change/the same

25

5
3 1 2 3 1
Greatly deteriorated Moderately deteriorated

Slightly deteriorated

Men

Migrant Household Incomes

INO: Majority of household incomes fell

PHI: only 10% experienced a decrease Reasons: Reduction in remittances and wage cuts, and for the PHI includes exchange rate volatility.

Change in household income

Change in income
140

120
(Number) 100 80 60 40 20 0

119 98 72 106

22 0 Increase Decrease Indonesia Philippines No change

Reasons for change

50 40 30 20 (Number) 10 0 2 12 3 1 0 40

35

14 7 1 0

13 0
3

Indonesia

Philippines

Changes in Living Conditions

Indonesia
100% 100% 80%

Philippines
80%

60% (%)

40%

(%)
20% 0% Men Women Total

60%

40%

20%

0% Men Women Total

Adjusting day-to-day expenses Borrowing money Using savings

Other Adjusting day-to-day expenses Borrowing money

Migrant Household Coping Mechanisms

Common methods: cutting expenses, consuming cheaper (and less nutritious) food, using saving, selling assets, and borrowing money from loan sharks. Extreme adjustments in children education such as pulling them out of school were a last resort.

Women bear the brunt of the crisis as they must also hold reproductive responsibilities.

Types of Expenditure Adjustments

A. Indonesia
Reducing food consumption

Men
37 29 12 28 26 14 22 25 1 2 0% 20% 40% 60% 80% 50 56 72 53 56 61 51 56 65 62 100% 5 3 1 1 3 1 5 3 0 0 0%

Women
0 10 11 11 10 12 8 8 10 10 20% 40% 60% 80% 100%

Cutting down on buying clothes

Cutting medical expenses Cutting down on tobacco and alcohol Growing own food Selling valuable possessions Using savings Borrowing money Doing own household chores Falling behind on repayments

B. Philippines
Reducing food consumption Cutting down on buying clothes Cutting medical expenses Cutting down on tobacco and alcohol Growing own food Selling valuable possessions

Using savings
Borrowing money Doing own household chores Falling behind on repayments

13 10 3 4 2 3 2 8 5 2 0% 20% 40% 60% 80% Yes

28 23 17 11 7 7 13 8 34 6 100% No

21 10 6 1 0 5 7 12 3 4 0% 20% 40% 60% 80%

38 36 24 13 14 11 14 12 51 13 100%

Perceptions about Man or Woman

Asked about who should work abroad?

Most households, returning migrants, and key informants preferred man than woman.
Men should be the breadwinner and women should be at home taking care of family and finances. Women need to work only if financial situation calls for it. Yet, more women going abroad for employment.

This exemplifies a strong push factor out of necessity, calling for gender mainstreaming policies.

 Indonesia
100

Man or Woman should be working abroad?

Philippines
100 88 80

80

60 (%) (%)

60

59 44

50
40 21 20 4 0 Better to send Better to send No difference a man a woman Total 1

41

40

32

17 12 7

20 10 4 0 Better to send Better to send No difference a man a woman Total 5 5

Men

Women

Summary of findings (1)

Women migrants more vulnerable to shocks due to their lower levels of education and skills.
Remitting more frequent during the crisis and remittance market in INO seems to be less developed. Returning migrants received little assistance. More women returnees seek to work abroad again as returning and finding a job at home are more challenging. Migrant households were also affected by the crises through the adverse impact on domestic labor market, and women often bear the brunt more.

Summary of findings (2)

Vulnerable employment increased during the crisis and in INO increase significantly.
Women were more in vulnerable employment.

Anti-migrant sentiments are on the rise and policy responses of some key destination countries make them worse. Pre-departure orientation seminars have a lot of room for improvement.

Policy implications (1)

Better job creation in the domestic economy Investing in education and skills especially for women migrant workers and household members. Lower transaction costs, remove barriers to remit and facilitate the use of formal channels. Provide better assistance to returning migrants in times of crisis. Reintegration programs need to have better targeting especially for women to ensure their success.

Policy implications (2)

Provision of cash and job search assistance, and skills training.

Institutions must be improved in the framework that men and women have equal rights and are treated equally.
Home and host governments and civil society organizations need to act better following reports of abuses. Programs need to improve targeting and coordination.

Policy implications (3)

Home and host governments and other stakeholders have to combat discrimination against migrants, which tend to increase during challenging times. Make migrant labour inflows more flexible to changing demand in the destination countries. Pre departure training on contract familiarization, cultural adjustment, financial literacy for migrant workers and their families.

Women migrant workers are more vulnerable to abuse and exploitation.

Host governments are to guarantee basic human rights of migrant workers and provide them with adequate labor protection. Missions of sending countries need to provide assistance to affected migrants and liaise with host governments.

Next steps
Further publications and disseminations in other forms
Policy dialogues with stakeholders

Outreach to local and international media

More in-depth study in other laborexporting and host countries

Thank you !!!

For any queries pls contact gsugiyarto@adb.org