SAME JOB, DIFFERENT WAGE FOR MIGRANTS? Nicaraguan migrants and living wage in Costa Rica

Koen Voorend (), Richard Anker () and Martha Anker ()
Additional contact information
Koen Voorend: Anker Research Institute
Richard Anker: Anker Research Institute
Martha Anker: Anker Research Institute

No 21-05-01, Global Living Wage Coalition (GLWC) from Universidad Privada Boliviana

Abstract: This paper investigates the argument that the cost of a decent standard of living is lower for migrants than for nationals when the former have family members left behind in a low-wage, low-cost country. The wage differential between the host country and the country of origin is not only a motivating factor behind migration, but also partly a reflection of differences in the cost of living. This paper therefore analyses whether, following this rationale, a lower wage for migrant workers can be in a sense justified if one ignores ethical concerns around the need for “equal pay for equal work” argument. We analyze this argument for Nicaraguan migrants in rural Costa Rica based on two existing living wage studies which found that the cost of a basic but decent living standard is 2.5 times higher in the receiving country Costa Rica. We f ind that the empirical foundation for justifying a lower wage for migrants based on migrants having lower living costs because their family members left behind have lower living costs is not confirmed. This unexpected result is due to two main factors: (i) migrants have double costs for some expenditures (like housing) as well as considerable migration-related costs such as fees, increased phone costs, and costs for transfers, and (ii) the contribution to family income of a spouse is considerably lower for migrants because their spouse is earning in a low wage country.

Keywords: Living wage; migration; immigrant workers; agricultural labor markets; discrimination; living costs. (search for similar items in EconPapers)
JEL-codes: D1 D10 J3 J43 J6 J7 J8 O1 O15 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2021-06
New Economics Papers: this item is included in nep-int, nep-mig and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:iad:glliwa:210501

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