Testing for Repugnance in Economic Transactions: Evidence from Guest Work in the Gulf

Clemens, Michael A.

doi:10.1086/694615

Cited by 8 publications

(7 citation statements)

References 55 publications

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“…Guest worker programs offer workers in developing countries unparalleled opportunities to increase their earnings by working abroad and are thus popular, with intense competition among prospective migrants for a limited number of spots. Survey evidence finds that Indian construction workers have favorable views of wages and working conditions for guest workers in the UAE [1]. Even though they have little bargaining power and are underpaid compared to Emirati nationals, guest workers who go to the UAE are more likely to recruit family members for the same opportunity, and earn more compared to Indian nationals who remain in India [1].…”

Section: Guest Workers Win: Individuals Benefitmentioning

confidence: 99%

“…Survey evidence finds that Indian construction workers have favorable views of wages and working conditions for guest workers in the UAE [1]. Even though they have little bargaining power and are underpaid compared to Emirati nationals, guest workers who go to the UAE are more likely to recruit family members for the same opportunity, and earn more compared to Indian nationals who remain in India [1].…”

Section: Guest Workers Win: Individuals Benefitmentioning

confidence: 99%

“…The advantages of global mobility for potential migrants are often compelling: an Indian construction worker who travels to work in the United Arab Emirates (UAE) earns roughly five times more than an observationally similar worker who remains in India [1]. Large gains for workers extend to firms and nations that take advantage of global opportunities for their labor needs.…”

Section: Motivationmentioning

confidence: 99%

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Do guest worker programs give firms too much power?

Norlander¹

2021

izawol

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Guest worker programs increase opportunities for people to work globally, benefitting migrant workers and the firms and countries that receive them. Concerns about these programs are often related to the potential for firms to hold power over workers. Such power allows firms to earn higher profits by paying guest workers lower wages, and depresses the employment and wages of host nation citizens and permanent residents. The potential negative effects of guest worker programs can be countered by weakening the attachment between guest workers and their sponsors, and by setting and enforcing high wage and labor standards. ELEVATOR PITCHGuest worker programs allow migrants to work abroad legally, and offer benefits to workers, firms, and nations. Guest workers are typically authorized to work only in specific labor markets, and are sponsored by, and must work for, a specific firm, making it difficult for guest workers to switch employers. Critics argue that the programs harm host country citizens and permanent residents ("existing workers"), and allow employers to exploit and abuse vulnerable foreign-born workers. Labor market institutions, competitive pressures, and firm strategy contribute to the effects of migration that occur through guest worker programs.

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Section: Guest Workers Win: Individuals Benefitmentioning

confidence: 99%

Section: Guest Workers Win: Individuals Benefitmentioning

confidence: 99%

Section: Motivationmentioning

confidence: 99%

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Do guest worker programs give firms too much power?

Norlander¹

2021

izawol

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“…More comprehensively Clemens () tests for evidence of repugnance— a repugnant transaction is one that offends some people, such as slavery, transactional sex, gambling or bribery—in migration transactions with South Asian migrant workers in the Gulf, an area with notoriously poor worker conditions and protections. Still, there is little evidence that migrants are engaging in transactions that cause them or others harm.…”

Section: The Mainstream Research Agendamentioning

confidence: 99%

“…In this sense, migration is an investment and a tool for household financial management. Families across the developing world use it for that purpose (Banerjee & Duflo, 2011;Clemens, 2018;DeParle, 2019;Lee, Morduch, Ravindran, Shonchoy, & Zamany, 2017). 2 But migration is not often studied as a substitute for, or complement to, other financial strategies.…”

Section: Introductionmentioning

confidence: 99%

Migration and household finances: How a different framing can improve thinking about migration

Clemens

Ogden²

2019

Development Policy Review

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Motivation It is time to reframe fundamentally the research agenda on migration, remittances, payments and development. Many policy‐makers in the developing world, and researchers, tend to view migrant remittances as windfall income, rather than as returns on investment, which is how families with migrants tend see remittances. Migration is thus, among other things, a strategy for financial management in poor households: location is an asset, migration an investment. Purpose We propose that this shift of perspective on remittances—from windfall to return on investment—leads to more fruitful research questions. Methods Reviewing the literature, we summarize the research questions that have dominated the literature on migration and remittances and why, owing largely to unhelpful perspectives, they lead us to less informative answers. Findings We suggest 12 new and alternative research questions that have received relatively little attention in the literature on migration and remittances, to spur new, more productive research. Policy Implications Migrant remittances are now several times larger than foreign aid. The effects of migration regulation and financial regulation on remittances have directly and significantly affect poverty and human security worldwide. But some of the most basic questions about remittances and their effects remain inadequately answered, in part because of a blinded research agenda. Asking better questions is a step toward better policies, programmes and regulations and, above all, to enable people on low incomes to improve their lives.

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Immigration Law

Eger

Weber

2021

Encyclopedia of Law and Economics

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Testing for Repugnance in Economic Transactions: Evidence from Guest Work in the Gulf

Cited by 8 publications

References 55 publications

Do guest worker programs give firms too much power?

Do guest worker programs give firms too much power?

Migration and household finances: How a different framing can improve thinking about migration

Immigration Law

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