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Why Is the Roy-Borjas Model Unable to Predict International Migrant Selection on Education? Evidence from Urban and Rural Mexico

Stefan Leopold, Jens Ruhose and Simon Wiederhold (simon.wiederhold@iwh-halle.de)

No 10588, CESifo Working Paper Series from CESifo

Abstract: The Roy-Borjas model predicts that international migrants are less educated than nonmigrants because the returns to education are generally higher in developing (migrant-sending) than in developed (migrant-receiving) countries. However, empirical evidence often shows the opposite. Using the case of Mexico-U.S. migration, we show that this inconsistency between predictions and empirical evidence can be resolved when the human capital of migrants is assessed using a two-dimensional measure of occupational skills rather than by educational attainment. Thus, focusing on a single skill dimension when investigating migrant selection can lead to misleading conclusions about the underlying economic incentives and behavioural models of migration.

Keywords: international migration; selection; occupational skills; education (search for similar items in EconPapers)
JEL-codes: F22 J24 J61 O15 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-int and nep-mig
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Why Is the Roy-Borjas Model Unable to Predict International Migrant Selection on Education? Evidence from Urban and Rural Mexico (2023) Downloads
Working Paper: Why is the Roy-Borjas model unable to predict international migrant selection on education? Evidence from urban and rural Mexico (2023) Downloads
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