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Internal Migration and Borrowing Constraints: Evidence from Peru

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Author Info
Sonia Laszlo (McGill University)
Eric Santor (Bank of Canada)

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Abstract

The decision to migrate has received substantial attention from both theoretical and empirical perspectives. Underlying most analyses is the desire to understand why individuals relocate within their own country, or more drastically, migrate to another country. While there are numerous reasons to migrate, economists have focused their research on the notion that there are gains to be made from migration: ceteris paribus, migrants are expected to earn more than non-migrants (Todaro, 1989). This paper utilizes a rich data set from Peru to assess the determinants of migration. We find that, when controlling for self- selection, migrants do not earn more than “stayers.”

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Paper provided by EconWPA in its series Development and Comp Systems with number 0411022.

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Length: 38 pages
Date of creation: 23 Nov 2004
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Handle: RePEc:wpa:wuwpdc:0411022

Note: Type of Document - pdf; pages: 38
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Web page: http://129.3.20.41

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Related research
Keywords: Economic Development; Migration; Credit Constraints.;

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Find related papers by JEL classification:
O - Economic Development, Technological Change, and Growth
P - Economic Systems

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References listed on IDEAS
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  1. Rosenzweig, Mark R. & Wolpin, Kenneth I., 1988. "Migration selectivity and the effects of public programs," Journal of Public Economics, Elsevier, vol. 37(3), pages 265-289, December. [Downloadable!] (restricted)
  2. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July. [Downloadable!] (restricted)
  3. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20035, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
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  4. Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267. [Downloadable!] (restricted)
  5. Dehejia, R.H. & Wahba, S., 1998. "Propensity Score Matching Methods for Non-Experimental Causal Studies," Discussion Papers 1998_02, Columbia University, Department of Economics.
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  6. 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)
  7. Grosh, M.E. & Glewwe, P., 1995. "A Guide to Living Standards Measurement Study Surveys and their Data Sets," Papers 120, World Bank - Living Standards Measurement.
  8. Pessino, Carola, 1991. "Sequential migration theory and evidence from Peru," Journal of Development Economics, Elsevier, vol. 36(1), pages 55-87, July. [Downloadable!] (restricted)
  9. George J. Borjas, 1988. "Immigration And Self-Selection," NBER Working Papers 2566, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April. [Downloadable!] (restricted)
  11. 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, vol. 41(4), pages 893-920, November.
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