Self-Selection in Migration and Returns to Unobservable Skills
AbstractSeveral papers have tested the empirical validity of the migration models proposed by Borjas (1987) and Borjas, Bronars, and Trejo (1992). However, to our knowledge, none has been able to disentangle the separate impact of observable and unobservable individual characteristics, and their respective returns across different locations, on an individual's decision to migrate. We build a model in which individuals sort, in part, on potential earnings - where earnings across different locations are a function of both observable and unobservable characteristics. We focus on the inter-provincial migration patterns of Canadian physicians. We choose this particular group for several reasons including the fact that they are paid on a fee-for-service basis. Since wage rates are exogenous, earning differentials are driven by differences in productivity. We then estimate a mixed conditional-logit model to determine the effects of individual and destination-specific characteristics (particularly earnings differentials) on physician location decisions. We find, among other things, that high-productivity physicians (based on unobservables) are more likely to migrate to provinces where the productivity premium is greater, while low-productivity physicians are more likely to migrate to areas where the productivity premium is lower. These results are consistent with a modified Borjas model of self-selection in migration based on both unobservables and observables.
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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1942.
Length: 30 pages
Date of creation: Jan 2006
Date of revision:
Publication status: published in: Journal of Population Economics, 2009, 22(4), 1005-1024
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Benoit Dostie & Pierre Thomas Léger, 2006. "Self-selection in migration and returns to unobservable skills," Cahiers de recherche 06-01, HEC Montréal, Institut d'économie appliquée.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-DCM-2006-02-05 (Discrete Choice Models)
- NEP-HRM-2006-02-05 (Human Capital & Human Resource Management)
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.:
- Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
- Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
- Dionne, Georges & Langlois, Alain & Lemire, Nicole, 1987. "More on the geographical distribution of physicians," Journal of Health Economics, Elsevier, vol. 6(4), pages 365-374, December.
- Michael Benarroch & Hugh Grant, 2004. "The interprovincial migration of Canadian physicians: does income matter?," Applied Economics, Taylor & Francis Journals, vol. 36(20), pages 2335-2345.
- Borjas, George J, 1987.
"Self-Selection and the Earnings of Immigrants,"
American Economic Review,
American Economic Association, vol. 77(4), pages 531-53, September.
- Daniel Chiquiar & Gordon H. Hanson, 2005.
"International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States,"
Journal of Political Economy,
University of Chicago Press, vol. 113(2), pages 239-281, April.
- Daniel Chiquiar & Gordon H. Hanson, 2002. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," NBER Working Papers 9242, National Bureau of Economic Research, Inc.
- Satu Nivalainen, 2004. "Determinants of family migration: short moves vs. long moves," Journal of Population Economics, Springer, vol. 17(1), pages 157-175, February.
- George J. Borjas & Stephen G. Bronars & Stephen J. Trejo, 1992.
"Self-Selection and Internal Migration in the United States,"
NBER Working Papers
4002, National Bureau of Economic Research, Inc.
- Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
- Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-35, May.
- Gary L. Hunt & Richard E. Mueller, 2004. "North American Migration: Returns to Skill, Border Effects, and Mobility Costs," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 988-1007, November.
- Roger Axelsson & Olle Westerlund, 1998. "A panel study of migration, self-selection and household real income," Journal of Population Economics, Springer, vol. 11(1), pages 113-126.
- Schlottmann, Alan M & Herzog, Henry W, Jr, 1981. "Employment Status and the Decision to Migrate," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 590-98, November.
- Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September.
- Andrés Rodríguez-Pose & Vassilis Tselios, 2010.
"Returns to migration, education and externalities in the European Union,"
Papers in Regional Science,
Wiley Blackwell, vol. 89(2), pages 411-434, 06.
- Andrés Rodríguez-Pose & Vassilis Tselios, 2010. "Returns to Migration, Education, and Externalities in the European Union," Working Papers 2010.25, Fondazione Eni Enrico Mattei.
- Andrés Rodríguez-Pose & Vassilis Tselios, 2009. "Returns to migration, education, and externalities in the European Union," Working Papers 2009-15, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales, revised 09 Feb 2010.
- Croce, Giuseppe & Ghignoni, Emanuela, 2011.
"Overeducation and spatial flexibility in Italian local labour markets,"
29670, University Library of Munich, Germany.
- Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers 145, University of Rome La Sapienza, Department of Public Economics.
- Dean R. Lillard & Anna Manzoni, 2012. "International Migration as Occupational Mobility," SOEPpapers on Multidisciplinary Panel Data Research 498, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Grip Andries de & Fouarge Didier & Sauermann Jan, 2008.
"What affects international migration of European science and engineering graduates?,"
006, Maastricht : ROA, Research Centre for Education and the Labour Market.
- Andries de Grip & Didier Fouarge & Jan Sauermann, 2010. "What affects international migration of European science and engineering graduates?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(5), pages 407-421.
- de Grip, Andries & Fouarge, Didier & Sauermann, Jan, 2009. "What Affects International Migration of European Science and Engineering Graduates?," IZA Discussion Papers 4268, Institute for the Study of Labor (IZA).
- Terry Gregory & Melanie Arntz & Florian Lehmer, 2011. "Unequal Pay or Unequal Employment? What Drives the Self-Selection of Internal Migrants in Germany?," ERSA conference papers ersa11p972, European Regional Science Association.
- Andrea Cutillo & Claudio Ceccarelli, 2010. "The internal relocation premium: are migrants positively or negatively selected? Evidence from Italy," Working Papers 137, University of Rome La Sapienza, Department of Public Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.