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Dual-earner migration in Britain: earnings gains, employment, and self-selection

  • Rabe, Birgitta

This paper examines how spouses in dual-earner couples in Britain weigh each partner's expected wage growth in the decision to migrate. Previous research suggests that husbands' job prospects dominate the migration choice irrespective of their relative earnings potential. Based on British panel data this paper employs an endogenous switching model and estimates wage change differentials of migrating vs. staying for husbands and wives corrected for double selectivity of migration and employment. The analysis shows that dual-earner couples put roughly equal weights on each partner's expected wage gains when deciding to migrate. Moreover, migrant wives' employment declines temporarily and there are significant selection effects in migration and employment among non-migrants.

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File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2006-01.pdf
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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2006-01.

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Date of creation: 01 Jan 2006
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Publication status: published
Handle: RePEc:ese:iserwp:2006-01
Contact details of provider: Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Phone: 44-1206-872957
Fax: 44-1206-873151
Web page: https://www.iser.essex.ac.uk/
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  1. Bartel, Ann P, 1979. "The Migration Decision: What Role Does Job Mobility Play?," American Economic Review, American Economic Association, vol. 69(5), pages 775-86, December.
  2. Shelly Lundberg & Robert Pollak, 2003. "Efficiency in Marriage," Review of Economics of the Household, Springer, vol. 1(3), pages 153-167, September.
  3. Jacobsen, Joyce P. & Levin, Laurence M., 2000. "The effects of internal migration on the relative economic status of women and men," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(3), pages 291-304, May.
  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, vol. 41(4), pages 893-920, November.
  5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  6. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  7. Fishe, Raymond P. H. & Trost, R. P. & Lurie, Philip M., 1981. "Labor force earnings and college choice of young women: An examination of selectivity bias and comparative advantage," Economics of Education Review, Elsevier, vol. 1(2), pages 169-191, April.
  8. Vijverberg, Wim P M, 1995. "Dual Selection Criteria with Multiple Alternatives: Migration, Work Status, and Wages," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 159-85, February.
  9. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," United Kingdom Stata Users' Group Meetings 2003 10, Stata Users Group.
  10. Sandell, Steven H, 1977. "Women and the Economics of Family Migration," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 406-14, November.
  11. 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, vol. 43(3), pages 483-516.
  12. John C. Ham, 1980. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," Working Papers 521, Princeton University, Department of Economics, Industrial Relations Section..
  13. Satu Nivalainen, 2004. "Determinants of family migration: short moves vs. long moves," Journal of Population Economics, Springer, vol. 17(1), pages 157-175, February.
  14. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
  15. Boheim, Rene & Taylor, Mark P., 2007. "From the dark end of the street to the bright side of the road? The wage returns to migration in Britain," Labour Economics, Elsevier, vol. 14(1), pages 99-117, January.
  16. Roger Axelsson & Olle Westerlund, 1998. "A panel study of migration, self-selection and household real income," Journal of Population Economics, Springer, vol. 11(1), pages 113-126.
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