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Citation Information

Type Journal Article
Title “Quédate con nosotros”? The Impact of Emigration on Wages in Honduras
URL http://www.oecd.org/development/poverty/47413923.pdf
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. Departing from the established literature measuring the impact of immigration and building on Borjas (2003) and Mishra (2007), this paper attempts to narrow that gap by investigating whether the large and intense emigration period from 2001 to 2007 to the US increased wages in Honduras, by exploiting the variation of labour supply by skill group in the labour market. Using an instrumental variable approach, the estimates show that a 10% increase in emigration from Honduras increased wages in Honduras by as much as 11%, an increase which is higher than previous findings in other countries. These findings are driven by women and by urban regions.

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