Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
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...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/04/16234947/distortions-international-migrant-labor-market-evidence-filipino-migration-wage-responses-destination-country-economic-shocks http://hdl.handle.net/10986/6044 |
| Summary: | 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. |
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