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Temporary and permanent migrant selection: Theory and evidence of ability‐search cost dynamics

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  • Joyce J. Chen
  • Katrina Kosec
  • Valerie Mueller

Abstract

We integrate two workhorses of the labor literature, the Roy and search models, to illustrate the implications of migration duration—specifically, whether it is temporary or permanent—for patterns of selection. Consistent with our stylized model, we show that temporary migrants are intermediately selected on education, with weaker selection on cognitive ability. In contrast, permanent migration is associated with strong positive selection on both education and ability, as it involves finer employee–employer matching and offers greater returns to experience. Networks are also more valuable for permanent migration, where search costs are higher. Labor market frictions explain observed network–skill interactions.

Suggested Citation

  • Joyce J. Chen & Katrina Kosec & Valerie Mueller, 2019. "Temporary and permanent migrant selection: Theory and evidence of ability‐search cost dynamics," Review of Development Economics, Wiley Blackwell, vol. 23(4), pages 1477-1519, November.
    • Handle: RePEc:bla:rdevec:v:23:y:2019:i:4:p:1477-1519
    DOI: 10.1111/rode.12617
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    Cited by:

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    4. Matilda Kilström & Birthe Larsen & Elisabet Olme, 2023. "Temporary refugee protection and labor-market outcomes," Empirical Economics, Springer, vol. 65(4), pages 1895-1929, October.
    5. Mueller, Valerie & Sheriff, Glenn & Dou, Xiaoya & Gray, Clark, 2020. "Temporary migration and climate variation in eastern Africa," World Development, Elsevier, vol. 126(C).

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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