EFFECT OF IMMIGRANTS ON WAGE AND COST IN THE NIGERIAN CONSTRUCTION INDUSTRY 1980-2020

Abstract

This study examines the effects of immigrants on wage and cost in the Nigerian construction industry, from 1980- 2020. The objectives are to; examine the effect of immigrants on wage in the Nigerian construction industry, ascertain the effect of immigrants on cost in the Nigerian construction industry and investigate the impact of immigrants on the Nigerian construction industry growth and performance. The study employed the econometric and statistical techniques; Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests, Co-integration Test, Vector Error Correction Model (VEC), Impulse response analysis in VEC models and Granger Causality. Based on the above econometric and statistical techniques conducted, it was observed that there is a significant effect of immigrant’s on wage in the Nigerian construction industry. Our results indicated significant positive effect of immigrants on cost in the Nigerian construction industry within the sample period. Furthermore, there is significant effect of immigrants on the Nigerian construction industrial growth performance and bidirectional nature of causality relationship between the variables in the model within the sample period 1980-2020. The empirical results do support that increase in the supply of labour resulting from immigrant’s, caused wages decline in the Nigerian construction industry and as well, support that the cost of 
building decreased as result of increase in stock of immigrants’ labours that leads to 21% decrease in cost in Nigeria construction industry. Based on these findings, the researcher recommends that; Yes wage for native’s worker in the construction industry declined by a relatively small amount, the societal effects of reduced wages and prices for all purchasers should 
be considered in the conversation. The construction industry should uphold the fact that these immigrant’s laborers are substitutes for native’s worker in the construction industry, yet it doesn't avoid the likelihood that they are supplements also. Nigeria construction industry should take advantage of presence of the immigrant’s workers, and expatriates’ companies in the industry to gain transfer of knowledge and advance in the construction technical knowhow.