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The impact of emigration on source country wages : evidence from the Republic of Moldova (Inglês)

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.

Detalhes

  • Autor

    Bouton,Lawrence, Paul,Saumik, Tiongson,Erwin H. R.

  • Data do documento

    2011/08/01

  • TIpo de documento

    Documento de trabalho sobre pesquisa de políticas

  • No. do relatório

    WPS5764

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    Moldávia,

  • Região

    Europa e Ásia Central,

  • Data de divulgação

    2011/08/01

  • Disclosure Status

    Disclosed

  • Nome do documento

    The impact of emigration on source country wages : evidence from the Republic of Moldova

  • Palavras-chave

    emigration on wages;source country;labor supply;growth in labor demand;dependent variable in equation;participation in higher education;fixed effect;nationally representative survey;labor demand curve;return to education;coefficient estimate;labor market information;national poverty line;supply of labor;competitive labor market;labor market impact;agriculture and industry;domestic labor supply;impact of migration;increase in labor;total labor force;net job creation;number of workers;impact of immigration;years of schooling;information on education;foreign labor markets;effect of remittance;volume of remittance;standard error;emigration rate;monthly wage;marital status;individual level;transition economy;Transition economies;independent variable;excess labor;regression model;labor shedding;supply shock;job growth;migrant worker;real wage;census data;agricultural sector;empirical evidence;construction industry;wage distribution;regression analysis;Vocational Education;education group;percent change;baseline regression;retail trade;baseline model;emigrant population;model specification;measurement error;working age;international economics;machine operator;demand shock;wage level;emigration data;wage inequality;skill premium;real gdp;work force;construction sector;internal migration;wage differential;labour market;anecdotal evidence;economic sector;illegal immigration;selection criterion;border enforcement;Learning and Innovation Credit;sample selection;relative magnitude;home production;central planning;reservation wage;agricultural wage;knowledge gap;job loss;social network;modern economy;global distribution;ceteris paribus;individual characteristic;employment generation;individual data;labour economics;small sample;construction work;financial crisis;work experience;sampling error;relative price;skill group;employment growth;work status;home country;wage structure;remittance inflow;explanatory variable;empirical analysis;average wage;empirical literature;demographic characteristic;native worker;geographic area;household survey;wage effect;International Trade;log-normal distribution;hourly earnings;remittance activity;standard practice;descriptive statistic;labor earning;open access;driving force;home countries;household consumption;development policy;high wage;Finance Sector;market pressure;agriculture sector;positive impact;employment experience;general equilibrium;human capital;wage increase;empirical findings;selection bias;future study;econometric study;

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