Global Wage Inequality and the International Flow of Migrants
AbstractA framework for understanding the determinants in the variation in the pricing of skills across countries and the model underlying the Mincer specification of wages that is used widely to estimate the relationship between schooling and wages are described. A method for identifying skill prices and for testing the Mincer model, using wages and the human capital attributes of workers located around the world, is discussed. A global wage equation that nests the Mincer specification is estimated that provides skill price estimates for 140 countries. The estimates reject the Mincer model. The skill price estimates indicate that variation in skill prices dominates the cross-country variation in schooling levels or rates of return to schooling in accounting for the global inequality in the earnings of workers worldwide. Variation in skill prices and GDP across countries has opposite and significant effects on the number and quality of migrants to the United States.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economic Growth Center, Yale University in its series Working Papers with number 983.
Length: 32 pages
Date of creation: Jan 2010
Date of revision:
wage; skill price; international migration; inequality;
Other versions of this item:
- Rosenzweig, Mark R., 2010. "Global Wage Inequality and the International Flow of Migrants," Working Papers 77, Yale University, Department of Economics.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-05 (All new papers)
- NEP-DEV-2010-02-05 (Development)
- NEP-LAB-2010-02-05 (Labour Economics)
- NEP-LTV-2010-02-05 (Unemployment, Inequality & Poverty)
- NEP-MIG-2010-02-05 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jasso, Guillermina & Rosenzweig, Mark R., 2008. "Selection Criteria and the Skill Composition of Immigrants: A Comparative Analysis of Australian and U.S. Employment Immigration," IZA Discussion Papers 3564, Institute for the Study of Labor (IZA).
- Barro, Robert J & Lee, Jong-Wha, 2001.
"International Data on Educational Attainment: Updates and Implications,"
Oxford Economic Papers,
Oxford University Press, vol. 53(3), pages 541-63, July.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers 42, Center for International Development at Harvard University.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
- Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001.
"Brain drain and economic growth: theory and evidence,"
ULB Institutional Repository
2013/10449, ULB -- Universite Libre de Bruxelles.
- Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
- Guillermina Jasso & Douglas S. Massey & Mark R. Rosenzweig & James P. Smith, 2004.
"The New Immigrant Survey Pilot (NIS-P): Overview and New Findings about U.S. Legal Immigrants at Admission,"
Labor and Demography
- Guillermina Jasso & Douglas Massey & Mark Rosenzweig & James Smith, 2000. "The new immigrant survey pilot (NIS-P): Overview and new findings about U.S. Legal immigrants at admission," Demography, Springer, vol. 37(1), pages 127-138, February.
- Richard B. Freeman & Remco Oostendorp, 2000. "Wages Around the World: Pay Across Occupations and Countries," NBER Working Papers 8058, National Bureau of Economic Research, Inc.
- Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
- Harald Fadinger & Karin Mayr, 2011.
"Skill-biased technological change, unemployment and brain drain,"
Vienna Economics Papers
1108, University of Vienna, Department of Economics.
- Harald Fadinger & Karin Mayr, 2012. "Skill-biased technological change, unemployment and brain drain," FIW Working Paper series 089, FIW.
- Harald Fadinger & Karin Mayr, 2012. "Skill-biased technological change, unemployment and brain drain," Norface Discussion Paper Series 2012011, Norface Research Programme on Migration, Department of Economics, University College London.
- Orley Ashenfelter, 2012. "Comparing Real Wage Rates: Presidential Address," American Economic Review, American Economic Association, vol. 102(2), pages 617-42, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Danishevsky).
If references are entirely missing, you can add them using this form.