We investigate the impact of internal migration on local labor markets in Thailand. Using an instrumental variables approach based on weather and distance, we construct an exogenous measure of the net migration inflow into each region. Our econometric results show that instrumenting for the possible endogeneity of net inward migration is crucial to the analysis. The results suggest substantial adjustments in hours worked and weekly wages in response to short-term changes in labor supply for low-skilled males.
|Journal||Economic Development and Cultural Change|
|Early online date||20 Sept 2017|
|Publication status||Published - Oct 2017|