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 elasticity 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 InfoPaper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1209.
Date of creation: Apr 2012
Date of revision:
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international migration; migrant demand; labor output elasticity; minimum wages.;
Other versions of this item:
- 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.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-23 (All new papers)
- NEP-LAB-2012-04-23 (Labour Economics)
- NEP-MIG-2012-04-23 (Economics of Human 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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Economic Development and Cultural Change,
University of Chicago Press, vol. 61(2), pages 247 - 280.
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IZA Discussion Papers
6655, Institute for the Study of Labor (IZA).
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