The Impact of Labour Migration on Wages in the Source Country Labour Market : Empirical Evidence from Zimbabwe

The study investigates the impact of labour migration on wages in the source country labour market, in the context of Zimbabwe; for the period 1985-2013. Our main argument is that labour migration can have a negative impact on wages in the source country and as such our model includes various interaction terms in order to determine the macroeconomic situation under which this can happen. An OLS (Ordinary Least Squares) estimation criterion was used to estimate a wage model which represent the labour market. Various diagnostic tests were done to check the reliability, significance and stability of the model. The study found out that thee is a negative relationship between labour migration and wages in Zimbabwe. The results provide further justification for the policy recommendations that can be used to reduce outward migration and also increase wages in Zimbabwe