“Stay with us”? Emigration and the labour market in Honduras
نویسنده
چکیده
Previous research has argued that migration forms an essential component to economic convergence between countries, particularly through the labour market. This paper contributes to the debate on the use of the skill cell approach of migration devised by Borjas (2003) by applying it to Honduras in the years following Hurricane Mitch, from 2001 to 2007. Relying on individual cross-sectional data and an instrumental variable approach, the estimates show that a 10% shift in emigration of the labour force from Honduras increased wages in Honduras by around 20%, an elasticity which is much higher than previous findings in other studies on other countries. Emigration also raised the average hours worked and and underemployment (albeit marginally) and decreased self-employment, with stronger impacts for women and individuals working in rural areas. The paper also refutes the idea that the adequate ‘labour market’ on which to measure such impacts is local rather than national, an idea coherent with Borjas. Results based on different definitions of skill cells, notably occupation and industrial sector, conclude that apart from wages these definitions do not yield any significant link between emigration and the labour market suggesting that there is mobility of workers across occupations and sectors.
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