Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58852
Authors: 
McKenzie, David
Theoharides, Caroline
Yang, Dean
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6498
Abstract: 
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 elasticity 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.
Subjects: 
international migration
migrant demand
labor output elasticity
minimum wages
JEL: 
O12
J23
F22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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