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Are experience and schooling complementary?

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Author Info
Yamauchi, Futoshi

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Abstract

"This paper models the assimilation process of migrants and shows evidence of the complementarity between their destination experience and upon-arrival human capital. Bayesian learning and dynamics of matching are modeled and empirically assessed, using panel data of wages from the Bangkok labor market in Thailand. The analysis incorporates (1) the heterogeneity of technologies and products, characteristic of urban labor markets, (2) imperfect information on migrants' types and skill demanded in the markets, and (3) migrants' optimal learning over time. Returns to destination experience emerge endogenously. Estimation results, which control migrants' selectivity by firstdifferencing procedures, show that (1) schooling returns are lower for migrants than for natives, (2) the accumulation of destination experience raises wages for migrants, (3) the experience effect is greater for more-educated agents, i.e., education and experience are complementary, and (4) the complementarity increases as destination experience accumulates. The results imply that more-educated migrants have higher learning efficiency and can perform tasks of greater complexity, ultimately yielding higher wage growth in the destination market. Simulations show that, due to the complementarity, wages for different levels of upon-arrival human capital diverge in the migrants' assimilation process." Author's Abstract"

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 166.

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Date of creation: 2003
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Handle: RePEc:fpr:fcnddp:166

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References listed on IDEAS
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.:
  1. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," RCER Working Papers 488, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
  2. Rosenzweig, Mark R & Stark, Oded, 1989. "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 905-26, August. [Downloadable!] (restricted)
  3. Williamson, Jeffrey G., 1988. "Migration and urbanization," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 11, pages 425-465 Elsevier. [Downloadable!] (restricted)
  4. Rosenzweig, Mark R., 1988. "Labor markets in low-income countries," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 15, pages 713-762 Elsevier. [Downloadable!] (restricted)
  5. Bencivenga, Valerie R & Smith, Bruce D, 1997. "Unemployment, Migration, and Growth," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 582-608, June.
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  6. Flinn, Christopher J, 1986. "Wages and Job Mobility of Young Workers," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S88-S110, June. [Downloadable!] (restricted)
  7. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
  8. Murphy, Kevin M & Welch, Finis, 1992. "The Structure of Wages," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 285-326, February. [Downloadable!] (restricted)
  9. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  10. Yamauchi, Futoshi & Tanabe, Sakiko, 2003. "Nonmarket networks among migrants," FCND briefs 169, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  11. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
  12. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December. [Downloadable!] (restricted)
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  13. Robert J. LaLonde & Robert H. Topel, 1992. "The Assimilation of Immigrants in the U. S. Labor Market," NBER Chapters, in: Immigration and the Workforce: Economic Consequences for the United States and Source Areas, pages 67-92 National Bureau of Economic Research, Inc. [Downloadable!]
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  14. Borjas, George J & Bronars, Stephen G & Trejo, Stephen J, 1992. "Assimilation and the Earnings of Young Internal Migrants," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 170-75, February. [Downloadable!] (restricted)
  15. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-51, April. [Downloadable!] (restricted)
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  16. Yap, Lorene Y. L., 1977. "The attraction of cities : A review of the migration literature," Journal of Development Economics, Elsevier, vol. 4(3), pages 239-264, September. [Downloadable!] (restricted)
  17. Yamauchi K., Futoshi, 2001. "Does inequality of labor earnings emerge in young days or later? : Labor earnings dynamics and learning about individual ability in heterogeneous society," Journal of Economic Behavior & Organization, Elsevier, vol. 44(4), pages 413-434, April. [Downloadable!] (restricted)
  18. Lanzona, Leonardo A., 1998. "Migration, self-selection and earnings in Philippine rural communities," Journal of Development Economics, Elsevier, vol. 56(1), pages 27-50, June. [Downloadable!] (restricted)
  19. Yoram Weiss & Zvi Eckstein, 1998. "The Absorption of Highly Skilled Immigrants: Israel, 1990 - 1995," University of Chicago - George G. Stigler Center for Study of Economy and State 140, Chicago - Center for Study of Economy and State.
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  20. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November. [Downloadable!] (restricted)
  21. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October. [Downloadable!] (restricted)
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  22. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. yamamura, eiji, 2008. "Dynamics of social trust and human capital in the learning process: The case of the Japan garment cluster in the period 1968-2005," MPRA Paper 10251, University Library of Munich, Germany. [Downloadable!]
  2. Tomohiro Machikita, 2004. "Is Learning by Migrating in Megalopolis Really Important?," Econometric Society 2004 Far Eastern Meetings 579, Econometric Society. [Downloadable!]
    Other versions:
  3. Piacentini, Mario, 2008. "Migration Enclaves, Schooling Choices and Social Mobility," MPRA Paper 8376, University Library of Munich, Germany. [Downloadable!]
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