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Emigration and Rising Wages in Myanmar: Evidence from Mon State

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  • Mateusz Filipski
  • Hak Lim Lee
  • Aung Hein
  • Ulrike Nischan

Abstract

Whether and how immigration affects labour markets is a hotly-debated and widely-studied topic. By contrast, the converse question of how emigration impacts labour markets in the source economy has remained largely understudied. In particular, whether outflows of labourers lead to higher wages in their home countries has only been addressed in a handful of studies. This paper contributes to filling this knowledge gap using data from Myanmar. We collected primary household data from rural Mon State, a southern state neighbouring Thailand. Analysis shows that over a quarter of the labour force is currently migrating for work. Relying on variation in local wages at the village level, regression estimates reveal a significant relationship between migration and wages of unskilled agricultural workers. We use measures of past migration as instrumental variables to further show that this relationship is likely causal. Rapidly rising wages in Myanmar carry deep consequences for the development trajectory of the country.

Suggested Citation

  • Mateusz Filipski & Hak Lim Lee & Aung Hein & Ulrike Nischan, 2020. "Emigration and Rising Wages in Myanmar: Evidence from Mon State," Journal of Development Studies, Taylor & Francis Journals, vol. 56(5), pages 946-963, May.
    • Handle: RePEc:taf:jdevst:v:56:y:2020:i:5:p:946-963
    DOI: 10.1080/00220388.2019.1626834
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    Cited by:

    1. Christiaensen, Luc & Rutledge, Zachariah & Taylor, J. Edward, 2020. "The Future of Work in Agriculture - Some Reflections," Jobs Group Papers, Notes, and Guides 32012537, The World Bank.
    2. Christiaensen, Luc & Rutledge, Zachariah & Taylor, J. Edward, 2021. "Viewpoint: The future of work in agri-food," Food Policy, Elsevier, vol. 99(C).
    3. Verena Löffler, 2021. "Questioning the feasibility and justice of basic income accounting for migration," Politics, Philosophy & Economics, , vol. 20(3), pages 273-314, August.
    4. Yuanyuan Gu & Jhorland Ayala-García, 2022. "Emigration and Tax Revenue," Documentos de trabajo sobre Economía Regional y Urbana 312, Banco de la Republica de Colombia.

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