On top of remittances, if and when the migrant nurses return to the Philippines they will bring with them greater amounts of training and experience contributing to social capital. The government has reacted to the potential benefits from emigration by sponsoring initiatives to ease the process. In 1982, for example, the government created a whole new department, the Philippine Overseas Employment Agency, responsible for optimizing the benefits of the country’s overseas employment program (Lorenzo et al, 2007). The Philippine National Bank has also reacted with programs that encourage remittance flows, and special remittance centers have been created in various parts of the U.S.
Of course, there are negative effects as well. When the Philippine nurses come to America they leave behind nursing shortages in their home country. The Philippines is losing one of its greatest sources of social capital—educated workers. In other words, the Philippines is experiencing brain-drain. Moreover, the benefits of government expenditures on education are not coming to bear in the Philippines but rather in the U.S. Furthermore, turnover at Philippine hospitals is so high that even operating rooms are staffed with novice nurses. Because of the depletion of skilled medical workers, hundreds of hospitals in the Philippines have fully or partially closed, and medical care is disproportionately distributed, favoring industrialized cities and leaving rural areas with inadequate coverage (Lorenzo et al, 2007).
The immigration of Filipino nurses also results in certain negative economic effects for the U.S. While the jobs being taken by immigrants would not necessarily have been filled by domestic laborers, American nurses may see nursing salaries decrease as Filipino immigrants enter the labor market with lower wage requirements. In order to obtain visas for the incoming Filipino nurses, U.S. hospitals must prove that they are unable to fill their existing vacancies with American nurses. Thus, it may appear that the jobs are going unfilled. However, the reason hospitals are unable to fill these vacancies with local help may be due to the low wages they are offering. Hospitals can set wages low because they know they can find foreign nurses who are willing to accept them, meaning that domestic workers are ultimately losing out on certain employment opportunities.