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Globalization and Formal Sector Migration in Brazil

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  • Aguayo-Téllez, Ernesto
  • Muendler, Marc-Andreas
  • Poole, Jennifer P.

Abstract

Summary Comprehensive linked employer-employee data allow us to study the relationship between domestic formal sector migration in Brazil and globalization. Considerable worker flows in the formal labor market during 1997-2001 are directed toward lower income regions--the reverse flows of those often posited for informal labor markets. Estimation of the worker's multi-choice migration problem shows that previously unobserved employer covariates are significant predictors associated with migration flows. These results support the idea that globalization acts on internal migration through job stability at exporting establishments and employment opportunities at locations with a concentration of foreign owned establishments. A 1% increase in exporter employment predicts a 0.3% reduced probability of migration. A 1% increase in the concentration of foreign owned establishments at potential destinations is associated with a 0.2% increase in the migration rate.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 6 (June)
Pages: 840-856

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:6:p:840-856

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: trade and labor market interactions domestic and regional migration multinational firms;

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References

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  1. Naércio Aquino Menezes Filho & Marc-Andreas Muendler & Garey Ramey, 2006. "The Structure of Worker Compensation in Brazil, with a Comparison to France and the United States," CESifo Working Paper Series 1643, CESifo Group Munich.
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Citations

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Cited by:
  1. Muendler, Marc-Andreas, 2007. "Labor Reallocation in Response to Trade Reform," University of California at San Diego, Economics Working Paper Series qt3cm38535, Department of Economics, UC San Diego.
  2. Trevor Tombe & Jennifer Winter, 2014. "What's Inside Counts: Migration, Taxes, and the Internal Gains from Trade," Working Papers 2013-28, Department of Economics, University of Calgary, revised 05 May 2014.
  3. World Bank, 2012. "World Development Report 2013 : Jobs," World Bank Publications, The World Bank, number 11843, October.

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