EconPapers    
Economics at your fingertips  
 

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 6498, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: We use an original panel dataset of migrant departures from the Philippines to identify the responsiveness of migrant numbers and wages to GDP shocks in destination countries. We find a large significant elasticity of migrant numbers to GDP 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: international migration; migrant demand; labor output elasticity; minimum wages (search for similar items in EconPapers)
JEL-codes: O12 J23 F22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-lab and nep-mig
Date: 2012-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Published in: American Economic Journal: Applied Economics, 2014, 6(2), 49-75.

Downloads: (external link)
http://ftp.iza.org/dp6498.pdf (application/pdf)

Related works:
Journal Article: Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks (2014) Downloads
Working Paper: Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks (2012) Downloads
Working Paper: Distortions in the international migrant labor market:evidence from Filipino migration and wage responses to destination country economic shocks (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp6498

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().

 
Page updated 2019-04-24
Handle: RePEc:iza:izadps:dp6498