Advanced Search
MyIDEAS: Login

Crossing the Border: Self-Selection, Earnings and Individual Migration Decisions

Contents:

Author Info

  • Bertoli, Simone

    ()
    (CERDI, University of Auvergne)

  • Fernández-Huertas Moraga, Jesús

    ()
    (FEDEA, Madrid)

  • Ortega, Francesc

    ()
    (Queens College, CUNY)

Abstract

Many empirical studies on the determinants of international migration flows rely exclusively on macro data, and do not account for migrants' self-selection. We analyze a very interesting episode in international migration for which we are able to gather individual-level data covering all relevant countries, namely the exodus of Ecuadorians to Spain and the US in the aftermath of the economic collapse of 1999. Specifically, we produce selection-corrected predictions of counterfactual individual earnings and use them to estimate a discrete-choice migration equation that allows for correlated errors across destinations and a rich structure of migration costs. We find that earnings significantly shape individual migration decisions, even in an episode in which Ecuadorians mostly chose Spain where earnings were lower than in the US, and they contribute to explaining the observed composition of migration flows. Moreover, our estimates show that changes in earnings at a particular destination have a larger effect on destination choice conditional on migration than on the scale of migration.

Download Info

If 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.
File URL: http://ftp.iza.org/dp4957.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4957.

as in new window
Length: 48 pages
Date of creation: May 2010
Date of revision:
Publication status: published in: Journal of Development Economics, 2013, 101, 75-91
Handle: RePEc:iza:izadps:dp4957

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

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: earnings; self-selection; international migration; individual-level data;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Anna Mayda, 2010. "International migration: a panel data analysis of the determinants of bilateral flows," Journal of Population Economics, Springer, vol. 23(4), pages 1249-1274, September.
  2. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  3. Clemens, Michael & Montenegro, Claudio & Pritchett, Lant, 2009. "The Place Premium: Wage Differences for Identical Workers across the US Border," Working Paper Series rwp09-004, Harvard University, John F. Kennedy School of Government.
  4. Luis Ignacio Jácome, 2004. "The Late 1990s Financial Crisis in Ecuador: Institutional Weaknesses, Fiscal Rigidities, and Financial Dollarization at Work," IMF Working Papers 04/12, International Monetary Fund.
  5. Simone Bertoli & Jesus Fernandez-Huertas Moraga & Francesc Ortega, 2011. "Immigration Policies and the Ecuadorian Exodus," World Bank Economic Review, World Bank Group, vol. 25(1), pages 57-76, March.
  6. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
  7. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
  8. Herriges, Joseph A. & Kling, Catherine L., 1996. "Testing the Consistency of Nested Logit Models with Utility Maximization," Staff General Research Papers 1500, Iowa State University, Department of Economics.
  9. David McKenzie & Hillel Rapoport, 2010. "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 811-821, November.
  10. Michéle V.K. Belot & Timothy J. Hatton, 2008. "Immigrant Selection in the OECD," CEPR Discussion Papers 571, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  11. Hanson, Gordon H., 2010. "International Migration and the Developing World," Handbook of Development Economics, Elsevier.
  12. Hamermesh, Daniel S. & Donald, Stephen G., 2008. "The effect of college curriculum on earnings: An affinity identifier for non-ignorable non-response bias," Journal of Econometrics, Elsevier, vol. 144(2), pages 479-491, June.
  13. Beine, Michel & Docquier, Frederic & Ozden, Caglar, 2009. "Diasporas," Policy Research Working Paper Series 4984, The World Bank.
  14. Ruud H Koning & Geert Ridder, 1999. "Discrete Choice and Stochastic Utility Maximization," Economics Working Paper Archive 413, The Johns Hopkins University,Department of Economics.
  15. Patrick Bayer & Shakeeb Khan & Christopher Timmins, 2008. "Nonparametric Identification and Estimation in a Generalized Roy Model," NBER Working Papers 13949, National Bureau of Economic Research, Inc.
  16. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Labor Mobility: Evidence from OECD Countries 1980-2005," Human Development Research Papers (2009 to present) HDRP-2009-06, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
  17. Fabian Valencia & Luc Laeven, 2008. "Systemic Banking Crises: A New Database," IMF Working Papers 08/224, International Monetary Fund.
  18. Gordon H Hanson & Craig McIntosh, 2010. "The Great Mexican Emigration," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 798-810, November.
  19. Libertad Gonzalez & Francesc Ortega, 2008. "How do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions," Development Working Papers 248, Centro Studi Luca d\'Agliano, University of Milano.
  20. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, 06.
  21. Philippe De Vreyer & Flore Gubert & François Roubaud, 2010. "Migration, Self-selection and Returns to Education in the WAEMU," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(1), pages 52-87, January.
  22. Simone Bertoli & Jesús Fernández-HuertasMoraga, 2011. "Multilateral Resistance to Migration," Working Papers 2011-04, FEDEA.
  23. 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.
  24. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  25. Gordon Dahl, 1997. "Mobility and the Returns to Education: Testing A Roy Model With Multiple Markets," Working Papers 760, Princeton University, Department of Economics, Industrial Relations Section..
  26. Gordon H. Hanson & Craig McIntosh, 2012. "Birth Rates and Border Crossings: Latin American Migration to the US, Canada, Spain and the UK," Economic Journal, Royal Economic Society, vol. 122(561), pages 707-726, 06.
  27. Falaris, Evangelos M, 1987. "A Nested Logit Migration Model with Selectivity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(2), pages 429-43, June.
  28. Simone BERTOLI, 2010. "Networks, Sorting and Self-selection of Ecuadorian Migrants," Annales d'Economie et de Statistique, ENSAE, issue 97-98, pages 261-288.
  29. Catia Batista, 2008. "Why Doesn't Labor Flow from Poor to Rich Countries? Micro Evidence from the European Integration Experience," Economics Series Working Papers 402, University of Oxford, Department of Economics.
  30. Kennan,J. & Walker,J.R., 2003. "The effect of expected income on individual migration decisions," Working papers 7, Wisconsin Madison - Social Systems.
  31. 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.
  32. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  33. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
  34. Clark, Ximena & Hatton, Timothy J. & Williamson, Jeffrey G., 2004. "Explaining U.S. immigration, 1971-98," Policy Research Working Paper Series 3252, The World Bank.
  35. Ximena Clark & Timothy J. Hatton & Jeffrey G. Williamson, 2007. "Explaining U.S. Immigration, 1971-1998," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 359-373, May.
  36. Jesúús Fernández-Huertas Moraga, 2011. "New Evidence on Emigrant Selection," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 72-96, February.
  37. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
  38. Dean Yang, 2006. "Why Do Migrants Return to Poor Countries? Evidence from Philippine Migrants' Responses to Exchange Rate Shocks," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 715-735, November.
  39. Borsch-Supan, Axel, 1990. "On the compatibility of nested logit models with utility maximization," Journal of Econometrics, Elsevier, vol. 43(3), pages 373-388, March.
  40. Bayer, Patrick & Khan, Shakeeb & Timmins, Christopher, 2011. "Nonparametric Identification and Estimation in a Roy Model With Common Nonpecuniary Returns," Journal of Business & Economic Statistics, American Statistical Association, vol. 29(2), pages 201-215.
  41. François Bourguignon & Martin Fournier & Marc Gurgand, 2004. "Selection Bias Corrections Based on the Multinomial Logit Model: Monte-Carlo Comparisons," DELTA Working Papers 2004-20, DELTA (Ecole normale supérieure).
  42. Evangelos M. Falaris, 1988. "Migration and Wages of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 514-534.
  43. François Bourguignon & Martin Fournier & Marc Gurgand, 2002. "Selection Bias Correction Based on the Multinomial Logit Model," Working Papers 2002-04, Centre de Recherche en Economie et Statistique.
  44. González, Libertad & Ortega, Francesc, 2011. "How do very open economies adjust to large immigration flows? Evidence from Spanish regions," Labour Economics, Elsevier, vol. 18(1), pages 57-70, January.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Facundo Albornoz & Antonio Cabrales & Esther Hauk, 2012. "Immigration and the school system," Economics Working Papers we1203, Universidad Carlos III, Departamento de Economía.
  2. Isabelle Chort & Jean-Noël Senne, 2013. "Intra-household Selection into Migration: Evidence from a Matched Sample of Migrants and Origin Households in Senegal," Working Papers halshs-00877071, HAL.
  3. Joan Llull, 2013. "Understanding International Migration: Evidence from a New Dataset of Bilateral Stocks (1960-2000)," Working Papers 715, Barcelona Graduate School of Economics.
  4. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2011. "Multilateral Resistance to Migration," IZA Discussion Papers 5958, Institute for the Study of Labor (IZA).
  5. Sara de la Rica & Albretch Glitz & Francesc Ortega, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," Working Papers 2013-16, FEDEA.
  6. Francesc Ortega & Giovanni Peri, 2012. "The Role of Income and Immigration Policies in Attracting International Migrants," Working Papers 1214, University of California, Davis, Department of Economics.
  7. Simone Bertoli & Hillel Rapoport, 2013. "Heaven's Swing Door: Endogenous skills, migration networks and the effectiveness of quality-selective immigration policies," CReAM Discussion Paper Series 1330, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  8. Isabelle Chort & Jean-Noël Senne, 2013. "Intra-household Selection into Migration: Evidence from a Matched Sample of Migrants and Origin Households in Senegal," Working Papers DT/2013/14, DIAL (Développement, Institutions et Mondialisation).
  9. Farré, Lídia, 2013. "New Evidence on the Healthy Immigrant Effect," IZA Discussion Papers 7840, Institute for the Study of Labor (IZA).
  10. Ortega, Francesc & Peri, Giovanni, 2014. "Openness and income: The roles of trade and migration," Journal of International Economics, Elsevier, vol. 92(2), pages 231-251.
  11. Ortega, Francesc & Peri, Giovanni, 2013. "Migration, Trade and Income," IZA Discussion Papers 7325, Institute for the Study of Labor (IZA).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp4957. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.