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 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.

Bibliographic Details

Main Authors:	Theoharides, Caroline, McKenzie, David, Yang, Dean
Language:	English
Published:	World Bank, Washington, DC 2012-04
Subjects:	ACCOUNTING, AVERAGE EDUCATION LEVEL, AVERAGE MONTHLY WAGE, AVERAGE WAGE, AVERAGE WAGES, BRAIN DRAIN, BUSINESS CYCLE, BUSINESS CYCLES, CAREGIVERS, CITIZENS, CONTRACT LABOR, CULTURAL CHANGE, DEMOCRACY, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DEVELOPMENT STRATEGY, DOMESTIC WORKERS, ECONOMIC CONDITIONS, ECONOMIC SHOCKS, ECONOMICS, ELASTICITY, ELASTICITY OF DEMAND, ELECTRICIANS, EMIGRATION, EMPLOYMENT, EMPLOYMENT PROGRAM, EMPLOYMENT RATES, EXCESS SUPPLY, FAMILY MEMBERS, FAMILY REUNIFICATION, FAMILY REUNIFICATION POLICIES, FEMALE WORKERS, FINANCIAL CRISIS, FINDING WORK, FLOWS OF MIGRANTS, FOREIGN LABOR, FOREIGN WORKERS, GDP, GLOBAL DEVELOPMENT, GOVERNMENT POLICIES, GROSS DOMESTIC PRODUCT, HIGH WAGE, HIGH WAGES, HOST COUNTRIES, HOST COUNTRY, HOUSEHOLD WORK, IMMIGRANT, IMMIGRANTS, IMMIGRATION, IMMIGRATION RULES, INCOME, INTERNATIONAL CONFERENCE ON MIGRATION, INTERNATIONAL CONVENTION, INTERNATIONAL MARKET, INTERNATIONAL MIGRANT, INTERNATIONAL MIGRATION, INTERNATIONAL MIGRATION FLOWS, JOBS, LABOR ADJUSTMENT, LABOR CONTRACTS, LABOR DEMAND, LABOR DEMAND CURVE, LABOR FORCE, LABOR FORCES, LABOR MARKET, LABOR MARKET ADJUSTMENT, LABOR MARKETS, LABOR MOVEMENTS, LABOR OFFICES, LABOR SUPPLY, LABORERS, M1, M2, MACROECONOMIC CONDITIONS, MANPOWER, MARITAL STATUS, MARKET WAGES, MENTAL ABUSE, MIGRANT FLOWS, MIGRANT LABOR, MIGRANT ORIGIN, MIGRANT REMITTANCES, MIGRANT WORKER, MIGRANT WORKERS, MIGRATION FLOWS, MIGRATION POLICY, MINIMUM WAGE, MINIMUM WAGES, NATIONAL DEVELOPMENT, NUMBER OF MIGRANTS, NURSES, OCCUPATION, PERMANENT MIGRATION, POLICY CHANGE, POLICY DISCUSSIONS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, PREVAILING WAGE RATE, PRIVATE RECRUITMENT AGENCIES, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRODUCTION WORKERS, PROGRESS, PUBLIC POLICY, QUOTAS, REAL GDP, REAL WAGES, RECRUITMENT PROCESS, REMITTANCES, RESPECT, SEASONAL WORKERS, SERVICE SECTOR, SEX, SKILL CATEGORIES, SKILL GROUPS, SKILL LEVEL, SKILL LEVELS, SKILLED MIGRANTS, SKILLED OCCUPATIONS, SKILLED WORKERS, SUPPLY CURVE, TEMPORARY WORK, TEMPORARY WORKERS, URBAN AREAS, VULNERABILITY, WAGE ADJUSTMENT, WAGE FLOORS, WAGE GAINS, WAGE INCREASE, WAGE PREMIUM, WORK CONTRACTS, WORKER, WORKERS, WORKING CONDITIONS,
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 https://hdl.handle.net/10986/6044
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