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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6498.
Length: 41 pages
Date of creation: Apr 2012
Date of revision:
Publication status: forthcoming in: American Economic Journal: Applied Economics
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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," 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-2012-05-08 (All new papers)
- NEP-DEV-2012-05-08 (Development)
- NEP-LAB-2012-05-08 (Labour Economics)
- NEP-MIG-2012-05-08 (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.:
- John Gibson & David McKenzie & Steven Stillman, 2013.
"Accounting for Selectivity and Duration-Dependent Heterogeneity When Estimating the Impact of Emigration on Incomes and Poverty in Sending Areas,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 61(2), pages 247 - 280.
- Gibson, John & McKenzie, David & Stillman, Steven, 2010. "Accounting for selectivity and duration-dependent heterogeneity when estimating the impact of emigration on incomes and poverty in sending areas," Policy Research Working Paper Series 5268, The World Bank.
- David McKenzie & John Gibson & Steven Stillman, 2006. "How Important is Selection? Experimental vs Non-experimental Measures of Income Gains from Migration," Working Papers in Economics 06/03, University of Waikato, Department of Economics.
- Michael A. Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 83-106, Summer.
- Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
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