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The Impact of Information on Migration Outcomes

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  • Demiralp, Berna

Abstract

This paper presents a model of migration in which migration decisions are made with incomplete information on the labor market conditions at destination. It provides an explanation for how differences in the level of information about the destination can bring about differences in economic outcomes related to migration, such as the migration propensity and the return to migration. The implications of the model show the conditions under which information positively and negatively affects these outcomes. Thus, the model can be used to explain a wide set of empirical findings regarding the relationship between information and migration outcomes. 2005 CPS data are used to estimate the econometric model. The estimation results suggest that increased access to information regarding destination labor markets increases one's likelihood to migrate to another state. Furthermore, the findings suggest that people who have more information regarding the destination at the time of their migration decision on average experience higher returns to migration.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16121.

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Date of creation: Jun 2009
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Handle: RePEc:pra:mprapa:16121

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Keywords: migration; incomplete information; return to migration;

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References

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  1. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, Econometric Society, vol. 46(4), pages 931-59, July.
  2. Lee, Lung-Fei, 1979. "Identification and Estimation in Binary Choice Models with Limited (Censored) Dependent Variables," Econometrica, Econometric Society, Econometric Society, vol. 47(4), pages 977-96, July.
  3. DaVanzo, Julie, 1983. "Repeat Migration in the United States: Who Moves Back and Who Moves On?," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 552-59, November.
  4. Jeremiah M. Allen & B. Curtis Eaton, 2005. "Incomplete Information and Migration: the Grass is Greener Across the Higher Fence," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 45(1), pages 1-19.
  5. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  6. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
  7. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 42(4), pages 679-94, July.
  8. Herzog, Henry W, Jr & Hofler, Richard A & Schlottmann, Alan M, 1985. "Life on the Frontier: Migrant Information, Earnings and Past Mobility," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 373-82, August.
  9. Bartel, Ann P, 1979. "The Migration Decision: What Role Does Job Mobility Play?," American Economic Review, American Economic Association, American Economic Association, vol. 69(5), pages 775-86, December.
  10. Luis Ubeda & Antonio Spilimbergo, 2002. "A Model of Multiple Equilibria in Geographic Labor Mobility," IMF Working Papers 02/31, International Monetary Fund.
  11. Siegfried Berninghaus & Hans Günther Seifert-Vogt, 1987. "International Migration under Incomplete Information," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), Swiss Society of Economics and Statistics (SSES), vol. 123(II), pages 199-218, June.
  12. 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.
  13. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-33, June.
  14. Tunali, Insan, 2000. "Rationality of Migration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(4), pages 893-920, November.
  15. Jeffrey J. Yankow, 2003. "Migration, Job Change, and Wage Growth: A New Perspective on the Pecuniary Return to Geographic Mobility," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 43(3), pages 483-516.
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