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...

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Main Authors:	McKenzie, David, Theoharides, Caroline, Yang, Dean
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
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 http://hdl.handle.net/10986/6044

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spelling	okr-10986-60442021-04-23T14:02:24Z Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks McKenzie, David Theoharides, Caroline Yang, Dean 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 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. 2012-04-27T07:44:29Z 2012-04-27T07:44:29Z 2012-04 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 English Policy Research Working Paper ; No. 6041 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Southeast Asia Philippines
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	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
spellingShingle	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 McKenzie, David Theoharides, Caroline Yang, Dean Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
geographic_facet	East Asia and Pacific Southeast Asia Philippines
relation	Policy Research Working Paper ; No. 6041
description	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.
format	Publications & Research :: Policy Research Working Paper
author	McKenzie, David Theoharides, Caroline Yang, Dean
author_facet	McKenzie, David Theoharides, Caroline Yang, Dean
author_sort	McKenzie, David
title	Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
title_short	Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
title_full	Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
title_fullStr	Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
title_full_unstemmed	Distortions in the International Migrant Labor Market : Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks
title_sort	distortions in the international migrant labor market : evidence from filipino migration and wage responses to destination country economic shocks
publisher	World Bank, Washington, DC
publishDate	2012
url	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
_version_	1764397220693540864

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

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