This paper 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. Hillel Rapoport, and the organizers of the 9th Migration and Development Conference held at the European University Institute in June 2016. In particular, we are grateful to Francesco Fasani, and Samuel Bazzi for their extremely helpful suggestions on the empirical strategy adopted in the paper. We also thank BNP2TKI (National Agency for the Placement and Protection of Indonesian Migrant Workers) for providing administrative data on documented Indonesian international migrants. Finally, we are indebted towards Hamidah Alatas, Talitha Chairunissa and Daim Syukriyah for their superb research assistance. All errors and mistakes remain our own responsibility. The views and opinions expressed in this paper do not necessarily reflect the position of the World Bank and cannot be attributed to the Government of Indonesia.on child outcomes and labor supply in Indonesia: How does gender matter? ', Policy Research Working Paper 5591, The World Bank.

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

This article investigates the relationship between immigration and the exposure of native workers to health and labor‐market risks arising from the COVID‐19 pandemic in Europe. Using various measures of occupational risks based on European Union labor force survey data, we find that immigrant workers, especially those from lower‐income member countries in Eastern Europe or from outside the EU, face greater exposure than their native‐born peers to both income and health‐shocks related to COVID‐19. We also show that native workers living in regions with a higher concentration of immigrants are less exposed to some of the income and health risks associated with the pandemic. To assess whether this relationship is causal, we use a Bartik‐type shift‐share instrument to control for potential bias and unobservable factors that would lead migrants to self‐select into more vulnerable occupations across regions. The results show that the presence of immigrant workers has a causal effect in reducing the exposure of native workers to various risks by enabling the native‐born workers to move into jobs that could be undertaken from the safety of their homes or with lower face‐to‐face interactions. The effects on the native‐born population are more pronounced for high‐skilled workers than for low‐skilled workers, and for women than for men. We do not find significant effect of immigration on wages and employment—indicating that the effects are mostly driven by a reallocation of natives from less safe jobs to safer jobs.

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Tax and benefit systems play an important role in determining work incentives at both, the extensive and the intensive margin of labour supply. The aim of this paper is to provide a comprehensive comparative analysis of work incentives in the EU. Our analysis makes use of microsimulation techniques and representative household surveys from all 28 EU countries to compare the distribution of short-and long-term participation tax rates and marginal effective tax rates across population subgroups. We focus on people currently in work and characterise the population facing low work incentives in each country. Our results highlight the large variation in the distribution of work incentives across EU countries, explained not only by differences in the design of tax-benefit systems, but also by the characteristics of the labour force across countries. Unemployment insurance benefits contribute substantially to short-term participation tax rates and explain on average 20 percentage point difference between work incentives of short-vs. long-term unemployment. Our analysis further highlights the need to use microdata to study differences across countries in terms of the population subgroups facing low incentives to work with the aim to inform the policy debate on potential reforms to make work pay.