Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
AbstractWe use an original panel dataset of migrant departures from the Philippines to identify the responsiveness of migrant numbers and wages to GDP shocks in destination countries. We find a large, significant response of migrant numbers to GDP shocks at destination, but no significant wage response. This is consistent with binding minimum wages for migrant labor. This result implies that labor market imperfections that make international migration attractive also make migrant flows more sensitive to global business cycles. Difference-in-differences analysis of a minimum wage change for maids confirms that minimum wages bind and demand is price sensitive without these distortions.
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Journal: Applied Economics.
Volume (Year): 6 (2014)
Issue (Month): 2 (April)
Other versions of this item:
- David McKenzie & Caroline Theoharides & Dean Yang, 2012. "Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks," CReAM Discussion Paper Series 1209, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- McKenzie, David & Theoharides, Caroline & Yang, Dean, 2012. "Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks," IZA Discussion Papers 6498, Institute for the Study of Labor (IZA).
- McKenzie, David & Theoharides, Caroline & Yang, Dean, 2012. "Distortions in the international migrant labor market :evidence from Filipino migration and wage responses to destination country economic shocks," Policy Research Working Paper Series 6041, The World Bank.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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NBER Working Papers
12325, National Bureau of Economic Research, Inc.
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- Francesc Ortega & Giovanni Peri, 2012.
"The Role of Income and Immigration Policies in Attracting International Migrants,"
Working Papers, University of California, Davis, Department of Economics
1214, University of California, Davis, Department of Economics.
- Ortega, Francesc & Peri, Giovanni, 2012. "The Role of Income and Immigration Policies in Attracting International Migrants," IZA Discussion Papers 6655, Institute for the Study of Labor (IZA).
- Bertoli, Simone & FernÃ¡ndez-Huertas Moraga, JesÃºs, 2013.
"Multilateral resistance to migration,"
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- Francesc Ortega & Giovanni Peri, 2012. "The Effect of Income and Immigration Policies on International Migration," NBER Working Papers 18322, National Bureau of Economic Research, Inc.
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