Distortions in the international migrant labor market :evidence from Filipino migration and wage responses to destination country economic shocks
AbstractThe authors use an original panel dataset of migrant departures from the Philippines to identify the responsiveness of migrant numbers and wages to gross domestic product shocks in destination countries. They find a large significant elasticity of migrant numbers to gross domestic product 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 The World Bank in its series Policy Research Working Paper Series with number 6041.
Date of creation: 01 Apr 2012
Date of revision:
Labor Markets; Labor Policies; Population Policies; International Migration; Economic Theory&Research;
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).
- 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.
- 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-2012-05-02 (All new papers)
- NEP-DEV-2012-05-02 (Development)
- NEP-LAB-2012-05-02 (Labour Economics)
- NEP-MIG-2012-05-02 (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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