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

2014 ◽  
Vol 6 (2) ◽  
pp. 49-75 ◽  
Author(s):  
David McKenzie ◽  
Caroline Theoharides ◽  
Dean Yang

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. (JEL F22, J31, J38, J61, O15)

2014 ◽  
Vol 6 (2) ◽  
pp. 316-334 ◽  
Author(s):  
Zhaopeng Frank Qu ◽  
Zhong Zhao

Purpose – The purpose of this paper is to study the dynamic change of the migrant labor market in China from 2002 to 2007 using two comparable data sets. Design/methodology/approach – To understand the factors behind the wage change, the authors use the Oaxaca-Blinder decomposition (Oaxaca, 1973; Blinder, 1973) method to study the hourly wage change over this five-year period. Findings – The focus is on the rural-urban migration decision, the wage structure of migrants, the labor market segmentation between migrants and urban natives, and the changes of these aspects from 2002 to 2007. The paper finds that prior migration experience is a key factor for the migration decision of rural household members, and its importance keeps increasing from 2002 to 2007. The results show that there is a significant increase in wages among both migrants and urban natives over this five-year period, but migrants have enjoyed faster wage growth, and most of the increase of wages among migrants can be attributed to the increase of returns to their characteristics. The authors also find evidence suggesting convergence of urban labor markets for migrants and for urban natives during this five-year period. Research limitations/implications – In order to make the 2002 and 2007 data sets comparable, the authors had to restrict the observations with fixed residence only, and can only include seven cities. These limit the representativeness of the sample. When interpret the findings in this paper, it is important to keep this in mind. Originality/value – Due to the scarcity of data, there are few studies on the dynamics of the migrating population and the migrant labor market. Since the urban natives and migrants are still segmented in the labor market, the migrant labor market may have its own characteristics, and also, because of the increasing importance of the migrants in Chinese society, knowledge of the evolution of the migrant labor market is crucial for grasping the whole story behind the Chinese economic miracle.


2012 ◽  
Vol 53 (2) ◽  
pp. 511-538 ◽  
Author(s):  
M. Ayhan Kose ◽  
Christopher Otrok ◽  
Eswar Prasad

2018 ◽  
Vol 15 (1) ◽  
pp. 53-75
Author(s):  
Patrick A. Pintus ◽  
Yi Wen ◽  
Xiaochuan Xing

2020 ◽  
Vol 56 (1&2) ◽  
pp. 173-186
Author(s):  
Mitzie Irene Conchada ◽  
Dominique Hannah Sy ◽  
Marites Tionco ◽  
Alfredo Paloyo

2014 ◽  
Vol 13 (1) ◽  
pp. 145
Author(s):  
Harold P. E. Ngalawa

This paper studies the evolution of the Southern African Customs Union (SACU), tracing it from its inception in 1889 as the Customs Union Convention, the worlds first customs union, to its current status. While the union has operated under different agreements, which have been negotiated and renegotiated with changing circumstances, the study identifies the agreements of 1889, 1910, 1969 and 2002 as key to the unions transformation. It is observed that SACU has evolved from a geopolitical organisation with a repressive colonial foundation to a well-integrated regional trading bloc that is perceived as a possible springboard for larger regional trading blocs in Africa. The study further explores evidence of declining SACU revenue and investigates its implications on government expenditures in the small members of the union; namely, Botswana, Lesotho, Namibia and Swaziland (BLNS countries). It is found that among the members of the union, Lesotho and Swaziland are the most dependent on SACU transfers and, consequently, the most vulnerable to the current downward trend in SACU revenue. While Namibia has traditionally relied on diamond exports, it has also been receiving large SACU transfers relative to its GDP. In addition, the study observes that the present SACU revenue sharing formula adopted in 2002 exposes the BLNS countries to instabilities arising from global business cycles more than it does South Africa.


Author(s):  
Juan Du ◽  
J. Paul Leigh

AbstractUsing longitudinal data from the Panel Study of Income Dynamics for 1997–2013 and difference-in-differences (DD) and difference-in-difference-in-differences (DDD) techniques, we estimate the effects of minimum wages on absence from work due to own and others’ (such as children’s) illnesses. We use person fixed effects within both linear and two-part models, the latter to explore changes at extensive and intensive margins. A lower educated group (likely affected by minimum wages) is compared with higher educated groups (likely unaffected). Within the lower educated group, we find higher minimum wages are associated with lower rates of absence due to own and others’ illness combined and due to own illness alone, but not associated with absence due to others’ illness. A $1 increase in the real minimum wage results in 19 % (in DD model) and 32 % (DDD) decreases in the absence rate due to own illness evaluated at the mean. These findings are strongest for persons who are not employed year-round and among the lowest wage earners. In additional analysis, we show that these effects are likely not due to changes in labor supply or job-related attributes. Instead, we find a possible mechanism: higher minimum wages improve self-reported health for lower educated workers.


Sign in / Sign up

Export Citation Format

Share Document