Dissertation Defense: Suna Jeong

Candidate: Suna Jeong

Major: Goverment

Advisor: Dennis P. Quinn, Ph.D.

Title: Three Essays on the Political Economy of International Labor Migration

This dissertation examines the interplay between government policies, economic strategies, and labor migration through three essays. It highlights the critical roles of currency undervaluation, repressive wage policies, and government initiatives promoting emigration for remittances as key drivers of labor migration.

The first essay explores why some countries export labor instead of importing Foreign Direct Investment (FDI). It posits that autocratic governments tend to undervalue their currencies to boost export competitiveness, which depresses domestic wages and drives low-skilled workers to seek opportunities abroad. This essay presents empirical evidence from a panel dataset covering 93 origin countries from 1990 to 2020, showing that low-skilled workers are more likely to migrate when their origin country undervalues its currency. This trend is observed in both autocracies and young democracies.

The second essay provides a historical case study of South Korea from the early 1960s to the late 1980s. It examines how strategic currency undervaluation, combined with wage and labor repression, fostered export-led growth while driving significant emigration. The undervalued Korean Won and repressed wages made overseas employment more attractive, prompting the government to formalize labor export programs. U.S. support for South Korea’s autocratic regimes made this strategy viable until democratization in the late 1980s ended labor exports.

The third essay extends the analysis to a bilateral context, considering destination countries. It focuses on how differences in currency valuations between origin and destination countries influence migration flows. Using a bilateral panel dataset covering 93 origin countries and 92 destination countries from 1990 to 2020, it confirms that low-skilled workers from countries with undervalued currencies are likely to migrate to countries with overvalued currencies.

Integrating theoretical insights, historical analysis, and empirical data, this dissertation provides a nuanced understanding of the economic and political factors driving labor migration. It underscores the complex trade-offs that governments face in pursuing economic growth and the resulting impacts on labor mobility.