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Internal Migration of Young Adults – Heterogeneity in Effects on Labour Income by School Grades

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  • Tano, Sofia

    () (Department of Economics, Umeå School of Business and Economics)

Abstract

The present paper estimates the relationship between migration across labour-market regions and the subsequent changes in earnings in Sweden by using the individual’s grade point average (GPA) from the final year of comprehensive school as a proxy for ability. This measure aims to capture heterogeneity in the effects of mobility on earnings for individuals conditional on educational attainment and other observed traits. Register data from Sweden, including two whole cohorts of individuals, is used. A difference-in-difference propensity score matching estimator is applied to estimate the relationship between income and migration up to seven years after migrating. The results show variation between different ability groups with respect to the return to regional migration. There are indications of larger gains for individuals holding top grades, while the bottom half seems to benefit less, or have slightly negative returns. The difference in return to migration across GPA quartiles is larger for women than for men.

Suggested Citation

  • Tano, Sofia, 2014. "Internal Migration of Young Adults – Heterogeneity in Effects on Labour Income by School Grades," Umeå Economic Studies 880, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0880
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    Keywords

    Human capital; income; internal migration; propensity score matching;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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