Moving from a Poor Economy to a Rich One: A Job Tasks Approach

Eran Yashiv ()

No 2119, RFBerlin Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin)

Abstract: This paper studies outcomes for workers moving from a poor to a rich economy employing a job tasks based approach. It uses a data case, whereby a worker could decide to work in a richer economy and place himself there by a daily or weekly commute. This set-up faciliates the disentanglement of income differences motives from a plethora of other motives. Thus it eschews the bias inherent in many studies. The paper emphasizes the idea that tasks are tied to locations, and workers choose a location-task-wage ‘pack.’ The task demanded, which is a bundle of skills, constrains human capital returns for movers. Relatively low task returns generate a substantial offset to the productivity gain for migrants, stemming from the rich economy having higher TFP and capital.

Keywords: movers and stayers; rich and poor economies; migranttasks; location-task-wage bundle; pure income effects; TFP differentials; human capital differences; self-selection (search for similar items in EconPapers)
JEL-codes: E24 F22 F66 J24 J31 J61 O15 (search for similar items in EconPapers)
Date: 2021-06
New Economics Papers: this item is included in nep-cwa, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:2119

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