Ideas to Action:

Independent research for global prosperity

Publications

 

Cover of Working Paper 501
January 31, 2019

Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment - Working Paper 501

‘Guest workers’ earn higher wages overseas on temporary low-skill employment visas. This wage gap can be used to measure gaps in the productivity of workers due to where they are, not who they are. This paper estimates the effects of guest work on Indian applicants to a construction job in the United Arab Emirates, where an economic crisis allocated guest work opportunities as-good-as-randomly among several thousand families. Guest work raised the return to poor families' labor by a factor of four, with little evidence of systematic fraud.

cover of working paper 463
October 6, 2017

Testing for Repugnance in Economic Transactions: Evidence from Guest Work in the Gulf - Working Paper 463

Workers from poor countries can find enormous economic opportunity by working temporarily in a rich country. But agencies that fight global poverty do little to facilitate guest work. This may be because guest workers are perceived to typically suffer negative side effects that outweigh the benefits. This paper uses a natural experiment to test several perceptions of harmful side-effects on Indian guest workers in the Gulf. The research shows little evidence that the harmful side-effects often ascribed to guest work are typical and systematic, though this does not contradict the occurrence of many individual cases of harmful side-effects.