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Are experience and schooling complementary?

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  • Yamauchi, Futoshi

Abstract

"This paper models the assimilation process of migrants and shows evidence of the complementarity between their destination experience and upon-arrival human capital. Bayesian learning and dynamics of matching are modeled and empirically assessed, using panel data of wages from the Bangkok labor market in Thailand. The analysis incorporates (1) the heterogeneity of technologies and products, characteristic of urban labor markets, (2) imperfect information on migrants' types and skill demanded in the markets, and (3) migrants' optimal learning over time. Returns to destination experience emerge endogenously. Estimation results, which control migrants' selectivity by firstdifferencing procedures, show that (1) schooling returns are lower for migrants than for natives, (2) the accumulation of destination experience raises wages for migrants, (3) the experience effect is greater for more-educated agents, i.e., education and experience are complementary, and (4) the complementarity increases as destination experience accumulates. The results imply that more-educated migrants have higher learning efficiency and can perform tasks of greater complexity, ultimately yielding higher wage growth in the destination market. Simulations show that, due to the complementarity, wages for different levels of upon-arrival human capital diverge in the migrants' assimilation process." Author's Abstract"

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  • Yamauchi, Futoshi, 2003. "Are experience and schooling complementary?," FCND discussion papers 166, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:166
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    Cited by:

    1. Liu, Yanyan & Yamauchi, Futoshi, 2013. "Population density, migration, and the returns to human capital and land: Highlights from Indonesia," IFPRI discussion papers 1271, International Food Policy Research Institute (IFPRI).
    2. Piacentini, Mario, 2008. "Migration Enclaves, Schooling Choices and Social Mobility," MPRA Paper 8376, University Library of Munich, Germany.
    3. Tomohiro Machikita, 2004. "Is Learning by Migrating in Megalopolis Really Important?," Econometric Society 2004 Far Eastern Meetings 579, Econometric Society.
    4. Machikita, Tomohiro, 2006. "Is Learning by Migrating to a Megalopolis Really Important? Evidence from Thailand," IDE Discussion Papers 82, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Yamamura, Eiji, 2009. "Dynamics of social trust and human capital in the learning process: The case of the Japan garment cluster in the period 1968-2005," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 377-389, October.
    6. Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal & Dewina, Reno & Sumaryanto, Sony, 2010. "Are Schooling and Roads Complementary? Evidence from Rural Indonesia," Working Papers 10, JICA Research Institute.
    7. Yusuke Ono, 2006. "Technology adoption in a community of heterogeneous education level: Who are your good neighbors?," Economics Bulletin, AccessEcon, vol. 15(8), pages 1-11.
    8. Giovanni Porzio & Maria Vitale, 2007. "Exploring Nonlinearities in Path Models," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(6), pages 937-954, December.

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