Labor Market Performance As A Determinant Of Migration
Are migrants more productive workers than nonmigrants? Such a comparison concerns both observed and unobservable productivity factors. This paper focuses on the correlation between unobservable factors at places of origin and destination. A human capital model of migration demonstrates that more productive workers at the origin would migrate only if the correlation between origin and destination factors is strongly positive. Longitudinal data from the Ivory Cost suggest that, indeed, the more productive workers do migrate. Furthermore, people migrate generally towards cities. Therefore, rural areas lose their productive workers; urban areas may gain in productivity from the geographical shifts in population. Copyright 1993 by The London School of Economics and Political Science.
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