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Non-remittance spending shows that Ghanaian migrants contribute tobusinesses and services that are <strong>of</strong>fered at the neighborhood, city, national,and international levels. Not all spending, however, leads to growth in theformal economy. Much money gets absorbed into the formal and informaleconomies <strong>of</strong> identity papers (see italic items in Table 1). As mentionedabove, identity papers absorbed 5 percent <strong>of</strong> total remittances sent, butthey also take up financial resources in the Netherlands. Substantialamounts <strong>of</strong> money are spent on lawyer fees. Some <strong>of</strong> these lawyers are<strong>of</strong> very low quality, not having specialized in migration law, and cancause delays and ultimately the denial <strong>of</strong> a visa request due to improperhandling <strong>of</strong> the application procedure (personal communication head <strong>of</strong>visa <strong>of</strong>fice, Dutch consulate, Accra, 26 March 2004). Fees charged by theDutch embassy for legalization <strong>of</strong> <strong>document</strong>s and for visas can also leadto substantial spending. Legalization alone cost EUR 122 in 2002 and,due to the highly stringent procedures, a person may have to pay the feeseveral times before succeeding. Detailed verification by the embassy<strong>of</strong> the information provided by migrants leads migrants to hire people tooversee the verification procedure. Such people charged in 2003 and 2004around EUR 2,000. The immigration police have raised the fees for stayingand permanent residency permits eight- and four-fold, respectively, in twoyears (Table 2). For some migrants <strong>this</strong> amounts to costs equivalent totheir monthly income. One <strong>of</strong> the most substantial spending items <strong>of</strong> allfor un<strong>document</strong>ed migrants is the cost <strong>of</strong> obtaining papers in the informaleconomy. In 2003 through 2004 the going rate for such transactions wasbetween EUR 10,000 and EUR 15,000. The other great cost is that <strong>of</strong> usingother people’s papers to work. The unwritten rule is that the owner <strong>of</strong> thepapers keeps 30 percent <strong>of</strong> the net salary earned by the un<strong>document</strong>edmigrant. This can amount to costs <strong>of</strong> almost EUR 4,500 per year for bluecollarjobs typically conducted by many un<strong>document</strong>ed migrants. Anothercost is that <strong>of</strong> foregone income <strong>of</strong> a better-paying job that is inaccessibleto those without a working permit. Finally, there is the cost <strong>of</strong> ill healththat one is more likely to encounter when working in jobs available inthe informal economy. These jobs are usually physically stressful, as forexample cleaning jobs in which people inhale strong cleaning solvents allday or have to repeat the same movement for large parts <strong>of</strong> the day, andlead to physical ailments.77

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