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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)

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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File URL: http://128.118.178.162/eps/dev/papers/0411/0411022.pdf
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Bibliographic Info

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
Date of revision:
Handle: RePEc:wpa:wuwpdc:0411022

Note: Type of Document - pdf; pages: 38
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Web page: http://128.118.178.162

Related research

Keywords: Economic Development; Migration; Credit Constraints.;

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References

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  1. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity score matching methods for non-experimental causal studies," Discussion Papers, Columbia University, Department of Economics 0102-14, Columbia University, Department of Economics.
  2. Rosenzweig, Mark R. & Wolpin, Kenneth I., 1988. "Migration selectivity and the effects of public programs," Journal of Public Economics, Elsevier, Elsevier, vol. 37(3), pages 265-289, December.
  3. Pessino, Carola, 1991. "Sequential migration theory and evidence from Peru," Journal of Development Economics, Elsevier, Elsevier, vol. 36(1), pages 55-87, July.
  4. 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.
  5. Katz, Eliakim & Stark, Oded, 1986. "Labor Migration and Risk Aversion in Less Developed Countries," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 4(1), pages 134-49, January.
  6. George J. Borjas, 1988. "Immigration And Self-Selection," NBER Working Papers 2566, National Bureau of Economic Research, Inc.
  7. Grosh, M.E. & Glewwe, P., 1995. "A Guide to Living Standards Measurement Study Surveys and their Data Sets," Papers, World Bank - Living Standards Measurement 120, World Bank - Living Standards Measurement.
  8. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, Elsevier, vol. 125(1-2), pages 305-353.
  9. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
  10. repec:fth:coluec:9899-01 is not listed on IDEAS
  11. Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, Elsevier, vol. 30(1-2), pages 239-267.
  12. Hillel Rapoport, 2002. "Migration, credit constraints and self-employment: A simple model of occupational choice, inequality and growth," Economics Bulletin, AccessEcon, vol. 15(7), pages 1-5.
  13. Lanzona, Leonardo A., 1998. "Migration, self-selection and earnings in Philippine rural communities," Journal of Development Economics, Elsevier, Elsevier, vol. 56(1), pages 27-50, June.
  14. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 42(4), pages 679-94, July.
  15. repec:ebl:ecbull:v:15:y:2002:i:7:p:1-5 is not listed on IDEAS
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Citations

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Cited by:
  1. Vargas, Enver, 2012. "El impacto del gasto público sobre el proceso de migración interna: Evidencia empírica para el periodo 2002-2007," Revista Estudios Económicos, Banco Central de Reserva del Perú, Banco Central de Reserva del Perú, issue 23, pages 67-81.
  2. Thurlow, James & Morley, Samuel & Pratt, Alejandro Nin, 2009. "Lagging regions and development strategies: The case of Peru," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 898, International Food Policy Research Institute (IFPRI).

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