Does maternal migration affect spousal labour market decisions? Evidence from Sri Lanka

This paper examines Sri Lankan men's labor market outcomes when their wives emigrate to work, leaving the husbands and their children at home in Sri Lanka - the effects of maternal migration on the husbands' labor market decisions. We used nationally representative cross-sectional data and historical migration rates at the community level as an instrument for maternal migration in two-stage least squares estimations. We find that maternal migration reduces the husbands' labor supply. Husbands are more likely to exit the labor market and become unemployed; the employed are less likely to moonlight and have lower wages, and those that exit the labor market are more likely to become stay-at-home dads. Using a second instrument, an indicator of whether a community has foreign-employment agencies, we also confirmed our main results. Our findings indicate that policies that aim to promote female migration as an exogenous income source may fall short if they do not address the effects of the husbands' labor market decisions