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The OECD Development Centre links OECD members with developing and emerging economies and fosters debate and discussion to seek creative policy solutions to emerging global issues and development challenges. This series of working papers is intended to disseminate the OECD Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language.
"Stay With Us?" The Impact of Emigration on Wages in Honduras
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- Jason Gagnon1
- Author Affiliations
- 1: OECD, France
- 07 juin 2011
- Bibliographic information
While the econometric literature on the impact of immigration on labour markets is well developed, there is a striking gap with regards to the impact of emigration on sending countries. Building on the established literature measuring the impact of immigration, this paper attempts to narrow that gap by investigating whether the short but intense emigration period from Honduras from 2001 to 2007 to the U.S. increased wages in Honduras. It notably exploits the variation of labour supply by skill group in the labour market in the years following Hurricane Mitch. Relying on individual cross-sectional data and an instrumental variable approach, the estimates show that a 10% increase in emigration from Honduras increased wages in Honduras by around 10%, an increase which is higher than previous findings in other countries – but diminishing over time. It also provides evidence on implications in terms of redistribution by gender, rural/urban households and private sector workers.
- development, Central America, Honduras, international emigration, wages, labour force
- Classification JEL:
- E24: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- F22: International Economics / International Factor Movements and International Business / International Migration
- J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure