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Asian labour mobility: new dimensions and implications for development.
Pakistan Development Review
|October 1, 1987
Summary
Organized labor migration creates an elastic labor supply during high demand and an inelastic supply during low demand due to a "stockpiling effect." This impacts migrant wages and labor-exporting nations.
Area of Science:
- Labor Economics
- International Migration Studies
- Sociology of Work
Background:
- The international labor market is increasingly shaped by organized labor migration.
- Asian labor migration to the Middle East represents a significant and growing phenomenon.
- Existing models may not fully capture the dynamics of contemporary labor migration.
Purpose of the Study:
- To analyze the structural impact of organized labor migration on international labor markets.
- To examine the effects of labor migration dynamics on migrant wages.
- To assess the consequences for the labor forces of labor-exporting countries.
Main Methods:
- Theoretical analysis of labor supply elasticity.
- Examination of the 'stockpiling effect' in labor markets.
- Case study focus on Asian labor migration to the Middle East.
Main Results:
- Organized labor migration introduces a new structural feature, creating highly elastic labor supply during demand upswings.
- A 'stockpiling effect' leads to inelastic labor supply during demand downturns.
- These dynamics have significant implications for migrant earnings and home country labor forces.
Conclusions:
- Organized labor migration fundamentally alters international labor market dynamics.
- The 'stockpiling effect' is a critical factor in understanding labor supply inelasticity.
- Further research is needed on the long-term impacts on both migrants and sending countries.