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The Effect of Migration on Earnings and Welfare Benefit Receipt

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  • Isaac C. Rischall

Abstract

This paper analyzes the outcomes of single mothers who move. I find that the earnings of single mother movers decline sharply relative to stayers in the years before moving. Based on this evidence, I propose a model in which individuals migrate in order to break away from persistent negative earnings shocks. On average, the wage earner migrants increase their expected earnings and income nineteen percent by migrating. Of the women who primarily receive welfare benefits, most change their earnings and income little by migrating.

Suggested Citation

  • Isaac C. Rischall, "undated". "The Effect of Migration on Earnings and Welfare Benefit Receipt," Canadian International Labour Network Working Papers 28, McMaster University.
  • Handle: RePEc:mcm:cilnwp:28
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    File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/CILN/cilnwp28.pdf
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    References listed on IDEAS

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    1. El-Gamal, Mahmoud A. & Grether, David M., 1995. "Are People Bayesian? Uncovering Behavioral Strategies," Working Papers 919, California Institute of Technology, Division of the Humanities and Social Sciences.
    2. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    3. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
    4. Honore, Bo E, 1992. "Trimmed LAD and Least Squares Estimation of Truncated and Censored Regression Models with Fixed Effects," Econometrica, Econometric Society, vol. 60(3), pages 533-565, May.
    5. McCall, B P & McCall, J J, 1987. "A Sequential Study of Migration and Job Search," Journal of Labor Economics, University of Chicago Press, vol. 5(4), pages 452-476, October.
    6. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
    7. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    8. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
    9. Pessino, Carola, 1991. "Sequential migration theory and evidence from Peru," Journal of Development Economics, Elsevier, vol. 36(1), pages 55-87, July.
    10. El-Gamal, M. & Grether, D.M., 1996. "Unknown Heterogeneity, the EC-EM Algorithm, and Large T Approximation," Working papers 9622, Wisconsin Madison - Social Systems.
    11. J. R. Walker, "undated". "Migration amoung low-income households: Helping the witch doctors reach consensus," Institute for Research on Poverty Discussion Papers 1031-94, University of Wisconsin Institute for Research on Poverty.
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