Cover Image

Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks

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 response of migrant numbers to GDP shocks at destination, but no significant wage response. Thi...

Full description

Bibliographic Details
Main Authors: McKenzie, David, Theoharides, Caroline, Yang, Dean
Language:en_US
Published: American Economic Association 2014
Subjects:
international migration
wage level and structure
wage differentials
wages, compensation, and labor costs
public policy
geographic labor mobility
immigrant workers
economic development
human resources
human development
income distribution
migration
Online Access:http://hdl.handle.net/10986/17922
Description
Summary: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 response 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.

Similar Items