Labour mobility and trade in services through the movement of natural persons

1. Agenda item 7 Issue paper 14 Labour mobility and trade in services through the movement of natural persons Contact: andreas.maurer@wto.org joscelyn.magdeleine@wto.org

2. Swissinfo.ch (30/04/2009) Germans attracted to eastern Swiss job market ...”About one in two doctors come from nearby Germany; one in three consultants and one in four nurses hail from across the border.” ...”the number of cross-border workers from neighbouring Austria soared to more than 8300 people.” “The agriculture sector does not find its labourers in neighbouring EU member countries except for the strawberry harvest”,...

3. Movement of persons • Employment opportunities • Income prospects • Improved technology • Where to draw the boundary? • Contract • Coverage employment services Labour mobility Trade in services

4. Terminology / Boundary • Labour mobility • (employment contract) • Relocation of workers to improve allocation of resources with impact on income distribution, e.g. • Intra corporate transfer • Directly recruited by foreign-established company • Trade in services • (service contract) • Contractual service suppliers • employees of foreign service providers • self-employed • intra-corporate transfer • sales persons

5. Key indicators Labour mobility Trade in services Value: Compensation of employees Workers remittances BPM6: Personal transfers Services categories SNA, BPM, MSITS Number of persons: Non-migrants International migrants, of which short-term Visitors RSIM Rev.1, IRTS 2008

6. Transactions relating to employment or service contracts? Employer-employee compensation of employeesrelationship If not then BOP services categories who controls? which benefits for the person? who pays social contributions?

7. Options to assess Mode 4 delivery in surveys Mode 1 Mode 4 1.Did the service delivery involve physical presence of service provider? Yes? Then, how was most of the service value provided (time/resources)? Mostly by fax, email, etc. Natural person at the end (e.g. to supervise) The person’s knowledge was essential to deliver the service 2. Require in services surveys allocation by each GATS mode of supply 3. Require estimated share of services inputs for Mode 4 services trade

8. Mode 4, migration and tourism statistics Categories of the UN Recommendations on Statistics of International Migration, revision 1: Migrant categories Non-migrant categories

9. Balance of payments labour related flows, World and leading economies, 2006, million USD Source: IMF BOP Database, May 2009

10. Sales of Services by GATS Modes of Supply: 2005 Statistical Approximation

11. Questions • Common terminology when dealing with migration/labour mobility/trade in services? • Developing further guidelines for differentiating employment and services contracts? • Further research with respect to the impact of short-term labour mobility/trade in services on productivity measures? • More appropriate measures for analyzing short-term labour mobility and mode 4?

12. Questions • Possible modifications to existing primary data collections to be explored? • Useful to integrate economic statistics and parts of social statistics through cross-classifying workers on the basis of: • economic activities to which they provide labour input, classified by ISIC; • products resulting from their labour input (CPC); • skill and education level (ISCO-88 and/or ISCED); • category of worker (e.g. business visitor, working for a foreign owned company, etc.); • length of stay; and • country of citizenship.