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.
McKenzie, David, Caroline Theoharides, and Dean Yang.
"Distortions in the International Migrant Labor Market: Evidence from Filipino Migration and Wage Responses to Destination Country Economic Shocks."
American Economic Journal: Applied Economics,
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