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Intended versus unintended consequences of migration restriction policies: evidence from a natural experiment in Indonesia

Makovec, Mattia, Purnamasari, Ririn S, Sandi, Matteo and Savitri, Astrid R. (2018) Intended versus unintended consequences of migration restriction policies: evidence from a natural experiment in Indonesia. Journal of Economic Geography, 18 (4). pp. 915-950. ISSN 1468-2702

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Identification Number: 10.1093/jeg/lby029

Abstract

This article studies the consequences of restrictions to migration at the origin on labor market outcomes and school enrolment in origin communities. Our difference-in-differences specification exploits the differential impact across districts in Indonesia of a reform that restricted the migration of Indonesian female domestic workers towards Saudi Arabia in 2011. Our results suggest that this reform did not lead to higher unemployment in Indonesia, but it increased the proportion of workers employed in informal jobs and in agriculture. No detectable change in the consumption patterns of Indonesian households appears from our analysis, suggesting that rural areas in Indonesia could absorb the sudden increase in the availability of workforce. Our findings also show an increase in junior secondary school enrolment of both males and females, arguably reflecting the importance of the maternal presence in the household for the investment in human capital of children.

Item Type: Article
Official URL: https://academic.oup.com/joeg
Additional Information: © 2018 Oxford University Press
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
JEL classification: F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 29 Aug 2018 09:49
Last Modified: 20 Feb 2019 06:52
URI: http://eprints.lse.ac.uk/id/eprint/90156

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