The Impact of Emigration on Source Country Wages : Evidence from the Republic of Moldova

The Impact of Emigration on Source Country Wages : Evidence from the Republic of Moldova

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 t...

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Bibliographic Details
Main Authors:	Bouton, Lawrence, Paul, Saumik, Tiongson, Erwin R.
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCOUNTING AVERAGE WAGE BIG CITIES CENSUSES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DRIVERS ECONOMICS EDUCATIONAL ATTAINMENT EMIGRANTS EMIGRATION EMPLOYMENT EMPLOYMENT GENERATION EMPLOYMENT GROWTH FEMALE EDUCATION FOREIGN LABOR GENERAL EQUILIBRIUM HOST COUNTRIES HOST COUNTRY HOUSEHOLD CONSUMPTION HOUSEHOLD SURVEY HUMAN CAPITAL ILLEGAL IMMIGRATION IMMEDIATE RELATIVES IMMIGRANT IMMIGRANTS IMMIGRATION IMPACT OF MIGRATION INCOME INTERNAL MIGRATION INTERNATIONAL MIGRATION INTERNATIONAL ORGANIZATION FOR MIGRATION INTERNATIONAL TRADE JOB LOSS KINSHIP LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET IMPACT LABOR MARKET INFORMATION LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LABOUR LABOUR MARKET LEGISLATORS LOW-INCOME COUNTRIES MARITAL STATUS MIGRANT WORKERS MIGRANTS NATIONAL POVERTY LINE NATIVE WORKERS NET JOB CREATION NUMBER OF WORKERS OCCUPATION OCCUPATIONS POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER PRIMARY EDUCATION PROGRESS REAL WAGE REAL WAGES REMITTANCE REMITTANCES RESPECT RETAIL TRADE SECONDARY EDUCATION SERVICE SECTOR SERVICE SECTORS SKILL GROUP SKILL PREMIUM SOCIAL NETWORKS SPILLOVER TERTIARY EDUCATION TOTAL LABOR FORCE UNEMPLOYED URBAN AREAS VOCATIONAL EDUCATION WAGE DIFFERENTIAL WAGE DISTRIBUTION WAGE EFFECTS WAGE INCREASE WAGE INEQUALITY WAGE LEVELS WAGE STRUCTURE WORK EXPERIENCE WORK FORCE WORKER WORKERS WORKFORCE
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110818094931 http://hdl.handle.net/10986/3526

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Summary:	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.