Self-Selection and the Impact of Migration on Earnings

Ricardo R. G. Avelino

Brazilian Review of Econometrics, 2010, vol. 30, issue 1

Abstract: This paper formulates and estimates a comparative advantage model of migration in which individuals maximize the value of log earnings, net of moving costs, by choosing between a pair of locations. Using a subsample of males from the 2003 wave of the PNAD, a comprehensive Brazilian national household survey, I construct six measures to assess the impact of migration on earnings. The results do not support the common notion that migrants constitute a positive selected subsample of the population, i.e., that they have unobservable traits which make them more productive than non-migrants at the destination, after controlling for observable characteristics.

Date: 2010
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