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Maids and School Teachers: Low Skill Migration and High Skill Labor Supply

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  • Tiago Freire

Abstract

Over the 40 years the pattern of migration has changed significantly with an increase in the share of female migrants, and especially low skill female migrants. These low skilled women migrants often work in the domestic service sector, a close substitute for household work. This paper analyzes how low skill rural-urban migration in Brazil from 1986 to 2000 lead to an increase in the labor supply of high skill women living in urban areas. In our model we show how large inflows of low skill women migrants decrease the relative price of domestic services. The largest beneficiaries of this trend are high skill women, who respond to the decrease in the cost of domestic services by joining the labor force and working more hours. We use Census data from Brazil from 1991 and 2000 to test this hypothesis. Using weather shocks in rural areas, and historical patterns of migrations, we are able to build an exogenous migration shock by skill to cities. Using this as an instrument for the price of domestic services and local wages we find that a 10% decrease in the wage of domestic workers increases the labor participation of high skill women by 3%.

Suggested Citation

  • Tiago Freire, 2011. "Maids and School Teachers: Low Skill Migration and High Skill Labor Supply," ERSA conference papers ersa10p160, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa10p160
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    References listed on IDEAS

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    1. da Mata, D. & Deichmann, U. & Henderson, J.V. & Lall, S.V. & Wang, H.G., 2007. "Determinants of city growth in Brazil," Journal of Urban Economics, Elsevier, vol. 62(2), pages 252-272, September.
    2. Patricia Cortés & José Tessada, 2011. "Low-Skilled Immigration and the Labor Supply of Highly Skilled Women," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 88-123, July.
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    5. George J. Borjas, 2021. "Native Internal Migration and the Labor Market Impact of Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 10, pages 275-312, World Scientific Publishing Co. Pte. Ltd..
    6. Giovanni Peri, 2007. "Immigrants' Complementarities and Native Wages: Evidence from California," NBER Working Papers 12956, National Bureau of Economic Research, Inc.
    7. George J. Borjas, 2021. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 9, pages 235-274, World Scientific Publishing Co. Pte. Ltd..
    8. Bound, John & Holzer, Harry J, 2000. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 20-54, January.
    9. Andréa Zaitune Curi & Naércio Aquino Menezes-Filho, 2004. "Os Determinantes Das Transições Ocupacionais No Mercado De Trabalho Brasileiro," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32nd Brazilian Economics Meeting] 141, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
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    Cited by:

    1. Freire, Tiago, 2013. "How the 1978 changes to the foreign domestic workers law in Singapore increased the female labour supply," MPRA Paper 44448, University Library of Munich, Germany.
    2. Halldén, Karin & Stenberg, Anders, 2013. "The Relationship between Hours of Domestic Services and Female Earnings: Panel Register Data Evidence from a Reform," Working Paper Series 4/2013, Stockholm University, Swedish Institute for Social Research.
    3. Tiago Freire, 2016. "How The 1978 Foreign Domestic Workers Law Increased The Labor Supply Of Singaporean Women," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-19, December.
    4. Peck-Leong Tan & John Gibson, 2017. "Does Outsourcing Household Production Harm Future Human Capital? Evidence From Malaysia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(05), pages 959-981, December.

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