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The impact of emigration on source country wages: evidence from the Republic of Moldova

Lawrence Bouton, Saumik Paul and Erwin R. Tiongson

No 5764, Policy Research Working Paper Series from The World Bank

Abstract: Thousands of Moldovans emigrated for work abroad over the last few years following nearly a decade of economic stagnation in their home country. At about 30 percent of the labor force, Moldova's emigrant population is in relative terms among the largest in the world. This study uses a unique household survey to examine the impact of emigration on wages in Moldova. The authors find a positive and significant impact of emigration on wages and the result is robust to the use of alternative samples and specifications. The size of the emigration coefficient varies depending on the sample and model specification, but the baseline result suggests that, on average, a 10 percent increase in the emigration rate is associated with 3.2 percent increase in wages. At the same time, there is evidence of significant differences across economic sectors in the estimated effect of emigration on wages. The authors speculate and provide some evidence that offsetting changes in labor demand, as revealed by information on employment growth by sector, may help explain some of the heterogeneity.

Keywords: Labor Markets; Labor Policies; Population Policies; Voluntary and Involuntary Resettlement; Human Migrations&Resettlements (search for similar items in EconPapers)
Date: 2011-08-01
New Economics Papers: this item is included in nep-lab, nep-lma and nep-mig
References: View references in EconPapers View complete reference list from CitEc
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