An analysis of the impact of macro-economic determinants on temporary employment of Filipinos to Saudi Arabia, Hong Kong and Japan

• Main Authors: Delfin, Carly Kathleen, Ocampo, Cathrine, San Andres, Krystle Caren, Villanueva, Gilda May
• Format: text
• Language: English
• Published: Animo Repository 2005
• Subjects: Filipinos > Employment > Foreign countries; Employment in foreign countries; Emigration and Immigration > Economic aspects; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14344
• Institution: De La Salle University

In this research paper, the researchers investigate the economic determinants of international migration flows. The analysis delivers both consistent estimates with the predictions of a number of theories of international migration and generated empirical models. In particular, it is found that the wage differential between an origin country and its host countries has a positive effect on the migration from country of origin to host countries. The results justify that indeed, what the Neo-Classical Economic Theory claims that the relationship of the two is true. Furthermore, the claim of the Keynesian Economic theory that the difference in unemployment rates of both the labor sending country and the labor receiving countries has a positive effect on the migration rate to destination countries is also justified. The Dual Labor Market Theory is applicable, as far as the Philippines' relationship with Saudi Arabia, Hong Kong, and Japan are concerned. The results show that indeed, education in the top three destination countries in termsd of Overseas Filipino Workers has a positive effect on migration from country of origin to destination countries. Furthermore, it also follows that the unemployment in Saudi Arabia, Hong Kong, and Japan has a negative effect on the migration of Filipino workers to their respective borders. This indicates that the Dual Labor Market Theory is a realistic view on low skilled international migration. Results on this paper also affirm the hypothesis on relative deprivation theory. It is justified that the effect of the educational level in sending countries on low skilled international labor migration is indeed negative. Moreover, using dummy variables in the regression models, results show the presence of country effects. Lastly, by taking advanatage of the panel variation in an annual data set of twenty years, this research paper makes progress in explaining the economic determinants of international migration flows.