Shing Yi Wang, co-editor in chief of the Journal of Development Economics and associate professor at the Wharton School of Business at the University of Pennsylvania, conducted the fifth lecture of the second module of the 2023 Economics Editor in Chief meeting. Her presentation was titled 'The Benefits and Costs of Guest Worker Programs: Experimental Evidence from the India-UAE Migration Corridor.' The lecture took place on June 26, 2023, from 20:00 to 22:00 Beijing time. The event was part of the thematic lecture series hosted by the School of Economics and Management at Beijing Jiaotong University, in collaboration with Elsevier Group and the Forum of Economic Management House. The online academic lecture was held via ZOOM, with simultaneous broadcasts on Elsevier's video and service accounts, as well as the Management Home live streaming platform. Professor Tang Daisheng from the School of Economics and Management at Beijing Jiaotong University hosted the event, and guest reviewers included Professor Zhao Yaohui and Professor Lu Fangwen from Peking University. The lecture attracted a total of 8,703 attendees, with 91 participants in the Zoom conference room, 6,914 viewers on Elsevier, and 1,698 viewers on Management Home.

Special Lecture by the Editor in Chief of Journal of Development Economics

Presided over by Professor Tang Daisheng from the School of Economics and Management at Beijing Jiaotong University

Shing Yi Wang, the co-editor in chief of the Journal of Development Economics, holds the position of associate professor in business economics and public policy research at the Wharton School of Business, University of Pennsylvania. Additionally, she serves as a senior researcher at the United States Bureau of Development Research and Economic Analysis and holds a researcher position at the National Bureau of Economic Research. Dr. Wang is also affiliated with the Federal Reserve and the US Department of Agriculture. Her research interests lie in the field of development economics and labor economics, focusing on microeconomic aspects related to property rights and immigration. Her research findings have been featured in prestigious academic journals, including the American Economic Review, Journal of Political Economy, Review of Economic Studies, and Quarterly Journal of Economics. Currently, Associate Professor Shing Yi Wang holds the position of co-editor in chief at the Journal of Development Economics.

In this lecture, Associate Professor Shing Yi Wang presented her recent research on "The Benefits and Costs of Guest Worker Programs: Experimental Evidence from the India-UAE Migration Corridor." Together with her collaborators, Associate Professor Shing Yi Wang conducted a randomized controlled trial (RCT) to assess the individual outcomes of participants in guest worker programs. The study involved thousands of Indian job seekers applying to work as guest workers in the United Arab Emirates (UAE).

In collaboration with the UAE Ministry of Labor and local construction companies, the researchers randomly provided job opportunities to potential immigrant workers at recruitment sites. They measured the impact on various aspects, including labor market outcomes, worker happiness, job satisfaction, social relationships, worker attitudes, labor agency costs, worker assets, and debt. The findings revealed that the income of workers who received random job invitations increased by 30%. However, those who accepted invitations to work in the UAE experienced a doubling of their compensation. Yet, these individuals also incurred substantial upfront fees to labor intermediaries, funded by additional debt, resulting in a roughly 10% reduction in take-home wages.

Additionally, due to the demanding physical nature of work in the UAE, combined with adverse weather conditions, the subjective well-being of workers significantly decreased. This observation aligned with the situation of most workers who received job opportunities but did not immigrate to the UAE. Using the linear marginal treatment effects framework, Associate Professor Shing Yi Wang and her collaborators evaluated workers who refused job opportunities in the UAE. They found that, even when considering intermediary costs, the monetary return for immigrants was substantial, but the non-monetary costs were higher.

Associate Professor Shing Yi Wang shares the latest research findings

Professors Zhao Yaohui and Lu Fangwen from Peking University provided comments on the lecture. Professor Zhao Yaohui emphasized the significance of labor migration, noting its potential to facilitate the transfer of individuals from low-productivity sectors to high-productivity sectors, thereby improving GDP and living standards. However, he also highlighted the substantial costs associated with labor migration. Professor Zhao Yaohui commended Associate Professor Shing Yi Wang and her collaborators for their research, stating that it contributes significantly to the understanding of the benefits and costs of labor migration.

Drawing on the example of labor migration in China, Professor Zhao Yaohui specifically addressed the non-monetary costs involved in the immigration process. He urged for more attention to be given to the issue of family separation among migrant workers and the impact on left-behind children. This suggests a broader consideration of the social and familial aspects of labor migration beyond its economic dimensions.

Professor Zhao Yaohui's Wonderful Comments from Peking University

Professor Lu Fangwen, as a guest commentator, conducted a thorough review of the randomized controlled experiment designed by Associate Professor Shing Yi Wang and her collaborators. Professor Lu Fangwen praised the clarity of the experiment's design and noted the inclusion of a rich set of variables in the study. Following this, he engaged in in-depth discussions with Associate Professor Shing Yi Wang on various aspects, including the structure of the article, boundary estimation of sample loss, intermediary costs, and retention wages.

Associate Professor Shing Yi Wang responded comprehensively to the opinions and suggestions of both reviewers, providing insights on how to enhance the research in the future. This likely involved addressing specific aspects of the study for improvement and refining the direction of subsequent research for more general and intuitive outcomes.

Highlights of Professor Lu Fangwen from Peking University

In this lecture, Associate Professor Shing Yi Wang, a distinguished scholar in the field of development economics, delved into the theme of "Benefits and Costs of Guest Worker Programs." Utilizing a randomized controlled experimental approach, she investigated how guest worker programs impact individual returns. Thoughtfully considering the expenses associated with labor market intermediaries and the contractual arrangements between brokers and workers, she addressed concerns about the program's impact on migrant workers, offering a valuable supplement to existing research. The invited reviewers, Professor Zhao Yaohui and Professor Lu Fangwen, meticulously summarized the content and contributions of this cutting-edge research. They also provided additional research points and related ideas for further exploration and enhancement, enriching participants' perspectives. The interactive Q&A session facilitated a comprehensive exchange among guests and attendees. This special lecture served as a platform for scholars with outstanding achievements in the field of development economics, both domestically and internationally, fostering meaningful exchanges. It introduced novel methods and perspectives for researchers studying labor economics and development economics, contributing to the ongoing progress of development economics, particularly in addressing China's unique challenges and experiences.