University of Birmingham The impact of internal migration on labour market outcomes of native males in Thailand

We investigate the impact of internal migration on local labour markets in Thailand. Using an instrumental variables approach based on weather and distance we construct an exogenous measure of the net migration inflow into each region. Our econometric results show that instrumenting for the possible endogeneity of net inward migration is crucial to the analysis. The results suggest substantial adjustments in hours worked and weekly wages in response to short term changes in labour supply for low skilled males. Key-words: Internal migration, Labour markets, Thailand JEL-Classifications: O15, J10 † EconomiX Université Paris Ouest Nanterre La Défense, 200 Avenue de la République 92001 Nanterre Cedex. Tel.: 33 (0) 1 40 97 78 25. Email: eliane.badaoui@u-paris10.fr ‡ Ecole Polytechnique Paris. * University College Dublin. 1 We are grateful to two anonymous referees for comments. 2