“Stay with Us”? The Impact of Emigration on Wages in Honduras
While the econometric literature on the impact of immigration on labour markets is well developed, there is a striking gap in the migration literature concerning the impact of emigration on sending countries. This paper attempts to narrow that gap by investigating whether the large and intense emigration period from Honduras from 2001 to 2007 to the US increased wages in Honduras, by focusing on skill-groups (education + experience) as defined in Borjas (2003). The estimates show that between 2001 and 2007, a 10% increase in emigration increased wages in Honduras by 1% to 3%, an increase which is slightly lower than previous findings in other countries.
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