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Globalization and Formal Sector Migration in Brazil

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  • Aguayo-Tellez, Ernesto
  • Muendler, Marc-Andreas
  • Poole, Jennifer Pamela

Abstract

We use novel linked employer?employee data to study the relationship between globalization and formal sector interstate migration for Brazil. We estimate the worker?s multichoice migration problem and document that previously unobserved employer covariates are significant predictors associated with migration flows. Our results provide support for the idea that globalization acts on internal migration through the growth of employment opportunities at locations with a high concentration of foreign owned establishments and the stability of employment at exporting establishments. A 1 per cent increase in the concentration of foreign owned establishments at potential migration destinations is associated with a 0.2 percentage point increase in the migration rate, and a 1 per cent increase in exporter employment predicts a 0.2 percentage point reduced probability of migration.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2008/rp2008-22.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/22.

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Length: 32 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:unu:wpaper:rp2008-22

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Keywords: migration; globalization; policy reforms; Brazil;

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References

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  1. Naércio Aquino Menezes Filho & Marc-Andreas Muendler, 2007. "Labor Reallocation in Response to Trade Reform," CESifo Working Paper Series 1936, CESifo Group Munich.
  2. 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.
  3. Menezes Filho, N. A. & Menezes Filho, N. A., 2007. "The Structure of Worker Compensation in Brazil, With a Comparison to France and the United States," Insper Working Papers wpe_78, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
  4. Graham, Douglas H, 1970. "Divergent and Convergent Regional Economic Growth and Internal Migration in Brazil-1940-1960," Economic Development and Cultural Change, University of Chicago Press, vol. 18(3), pages 362-82, April.
  5. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
  6. Au, Chun-Chung & Henderson, J. Vernon, 2006. "How migration restrictions limit agglomeration and productivity in China," Journal of Development Economics, Elsevier, vol. 80(2), pages 350-388, August.
  7. Gian S. Sahota, 1968. "An Economic Analysis of Internal Migration in Brazil," Journal of Political Economy, University of Chicago Press, vol. 76, pages 218.
  8. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO.
  9. 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.
  10. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
  11. Meier, Gearld & Rauch, James E., 2005. "Leading Issues in Economic Development," OUP Catalogue, Oxford University Press, edition 8, number 9780195179606, September.
  12. Filho, Naerico Aquino Menezes & Muendler, Marc-Andreas & Ramey, Garey, 2006. "The Structure of Worker Compensation in Brazil, With a Comparison to France and the United States," University of California at San Diego, Economics Working Paper Series qt8pr105rg, Department of Economics, UC San Diego.
  13. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  14. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, October.
  15. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  16. Yap, Lorene Y L, 1976. "Internal Migration and Economic Development in Brazil," The Quarterly Journal of Economics, MIT Press, vol. 90(1), pages 119-37, February.
  17. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Naércio Aquino Menezes Filho & Marc-Andreas Muendler, 2007. "Labor Reallocation in Response to Trade Reform," CESifo Working Paper Series 1936, CESifo Group Munich.
  2. Laura Hering, 2014. "Does Access to Foreign Markets shape Internal Migration? Evidence from Brazil," Tinbergen Institute Discussion Papers 14-084/VI, Tinbergen Institute.
  3. repec:clg:wpaper:2013-28 is not listed on IDEAS
  4. World Bank, 2012. "World Development Report 2013," World Bank Publications, The World Bank, number 11843, July.

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