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International migration and local employment: analysis of self-selection and earnings in Tajikistan

Author

Listed:
  • Atamanov, Aziz

    (Maastricht Graduate School of Governance, Maastricht University)

  • Berg, Marrit van den

    (Wageningen University, The Netherlands)

Abstract

This paper addresses the issue of self-selection of individuals in international labour migration, non-agricultural and agricultural employment in Tajikistan and its link to earnings from these activities. Unlike most empirical studies, we could attribute selection bias on unobservable characteristics to the allocation of individuals to alternative employment sectors and analyse its impact on earnings abroad and at home. We have found positive selection in migration against local non-agricultural activities and positive selection in local non-agricultural activities against local agricultural activities. This indicates that the most capable individuals with regards to unobservable characteristics choose to migrate, while the somewhat less able choose non-agricultural activities, and individuals with the worst capabilities stay in poorly-paid agricultural activities. Controlling for self-selection, labour income returns to education of migrants and individuals in non-agricultural activities are slightly lower than those from Ordinary Least Squares (OLS).

Suggested Citation

  • Atamanov, Aziz & Berg, Marrit van den, 2011. "International migration and local employment: analysis of self-selection and earnings in Tajikistan," MERIT Working Papers 2011-047, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2011047
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    References listed on IDEAS

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    Cited by:

    1. Hiwatari, Masato, 2016. "Social networks and migration decisions: The influence of peer effects in rural households in Central Asia," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1115-1131.

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    Keywords

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    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
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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