THE IMPACT OF INTERNATIONAL LABOR FORCE ON LABOR FORCE PARTICIPATION, GDP AND PRODUCTIVITY

Abstract

In today’s world, there are many reasons behind labor migration, however, better living conditions are still the main motives. A new language, a new life in a foreign country, adaptation to the social and economic life, livelihood costs, loss of wages during a new job search are the main disadvantages that migrant labor can experience. The aim of this study is to reveal the impact of the international labor force on labor force participation, gross domestic product (GDP), and productivity in Turkey. The research method is a multivariate regression model, estimated in Stata. The number of foreign workers who are registered in the Foreigners Automation System and who have work permits is taken into account. According to the statistics, they are generally employed in low-skilled positions. The results provided that the foreign workers have a limited impact on the labor force participation, GDP, and productivity in the Turkish labor market. But in the last years, the education status of the foreign workers has been increasing which can pose a rise in productivity and in GDP in the future. We think that foreign labor workers are crucial forces both for host countries and organisations. Therefore, revealing other effects of foreign workers on the economy will contribute to both literature and practice.