Impact of Internal Migration on Labor Market Outcomes of Native Males in Thailand

We investigate the impact of internal migration on local labor 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 labor supply for low-skilled males.