Distortions in the international migrant labor market:evidence from Filipino migration and wage responses to destination country economic shocks

David McKenzie, Caroline Theoharides and Dean Yang

No 6041, Policy Research Working Paper Series from The World Bank

Abstract: The 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.

Keywords: Labor Markets; Labor Policies; Population Policies; International Migration; Economic Theory&Research (search for similar items in EconPapers)
Date: 2012-04-01
New Economics Papers: this item is included in nep-dev, nep-lab and nep-mig
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks (2014)
Working Paper: Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks (2012)
Working Paper: Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks (2012)
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