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A Nested Logit Migration Model with Selectivity


  • Falaris, Evangelos M


The author specifies a multiple discrete-choice migration model with a correction for selectivity in wage equations, and applies a less restrictive technique for modeling multiple discrete choices than in previous studies of migration. The author estimates the model using Venezuelan microdata, and finds evidence of positive selection in some state wage equations. This suggests that migration decisions are made according to the principle of comparative advantage. Evidence is also found of unobserved similarities between some states of Venezuela such that individuals regard them as neither perfectly distinct nor perfect substitutes. Copyright 1987 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • 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 429-443, June.
  • Handle: RePEc:ier:iecrev:v:28:y:1987:i:2:p:429-43

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    References listed on IDEAS

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    Cited by:

    1. John C. Ham & Xianghong Li & Patricia B. Reagan, 2004. "Propensity Score Matching, a Distance-Based Measure of Migration, and the Wage Growth of Young Men," IEPR Working Papers 05.13, Institute of Economic Policy Research (IEPR).
    2. Bertoli, S. & Fernández-Huertas Moraga, J. & Ortega, F., 2013. "Crossing the border: Self-selection, earnings and individual migration decisions," Journal of Development Economics, Elsevier, vol. 101(C), pages 75-91.
    3. 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.
    4. Tripathi Sanjeev & Sinha, Piyush Kumar, 2008. "Choice of a Retail Store and Retail Store Format: A Hierarchical Logit Model," IIMA Working Papers WP2008-04-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    5. Lahiri, Kajal & Gao, Jian, 2002. "Bayesian analysis of nested logit model by Markov chain Monte Carlo," Journal of Econometrics, Elsevier, vol. 111(1), pages 103-133, November.
    6. Etienne Wasmer & Peter Fredriksson & Ana Lamo & Julian Messina & Giovanni Peri, 2005. "The Macroeconomics of Education," Sciences Po publications info:hdl:2441/9064, Sciences Po.
    7. Xing, Chunbing & Zhang, Junfu, 2017. "The preference for larger cities in China: Evidence from rural-urban migrants," China Economic Review, Elsevier, vol. 43(C), pages 72-90.
    8. 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.
    9. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    10. Khandker Habib, 2011. "A random utility maximization (RUM) based dynamic activity scheduling model: Application in weekend activity scheduling," Transportation, Springer, vol. 38(1), pages 123-151, January.
    11. Eliane El Badaoui & Riccardo Magnani, 2015. "Tax Policies and Informality in South Africa," EconomiX Working Papers 2015-22, University of Paris Nanterre, EconomiX.
    12. repec:spo:wpecon:info:hdl:2441/9064 is not listed on IDEAS
    13. Kettunen, Juha, . "Essays on Wages, Job Tenure and Unemployment Duration in the Finnish Labour Market," ETLA A, The Research Institute of the Finnish Economy, number 25.
    14. Mika Haapanen, 2001. "Labour market performance and determinants of migration by gender and region of origin," ERSA conference papers ersa01p130, European Regional Science Association.
    15. Lall, Somik V. & Timmins, Christopher & Yu, Shouyue, 2009. "Connecting lagging and leading regions : the role of labor mobility," Policy Research Working Paper Series 4843, The World Bank.
    16. Bolduc, Denis & Fortin, Bernard & Fournier, Marc-Andre, 1996. "The Effect of Incentive Policies on the Practice Location of Doctors: A Multinomial Probit Analysis," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 703-732, October.
    17. Ham, John C. & Li, Xianghong & Reagan, Patricia B., 2011. "Matching and semi-parametric IV estimation, a distance-based measure of migration, and the wages of young men," Journal of Econometrics, Elsevier, vol. 161(2), pages 208-227, April.
    18. Jacopo Mazza, 2012. "Does Risk Matter? A Semi-parametric Model for Educational Choices in the Presence of Uncertainty," The School of Economics Discussion Paper Series 1225, Economics, The University of Manchester.
    19. Haapanen, Mika, 2002. "Variation of migration behaviour in population," ERSA conference papers ersa02p283, European Regional Science Association.
    20. Haapanen, Mika, 2000. "Impact Of Expected Earnings On Interregional Migration Decisions In Finland," ERSA conference papers ersa00p269, European Regional Science Association.
    21. Kettunen, Juha, 2002. "Labour mobility of unemployed workers," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 359-380, May.
    22. 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.
    23. Krieg, Randall G., 1997. "Occupational change, employer change, internal migration, and earnings," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 1-15, February.
    24. Tuomo Suhonen & Jaakko Pehkonen & Hannu Tervo, 2011. "Spatial variation in the development of the return to university education in Finland, 1970-2004," ERSA conference papers ersa10p1351, European Regional Science Association.

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