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Globalization and Formal Sector Migration in Brazil

  • Aguayo-Tellez, Ernesto
  • Muendler, Marc-Andreas
  • Poole, Jennifer Pamela

We use novel linked employer?employee data to study the relationship between globalization and formal sector interstate migration for Brazil. We estimate the worker?s multichoice migration problem and document that previously unobserved employer covariates are significant predictors associated with migration flows. Our results provide support for the idea that globalization acts on internal migration through the growth of employment opportunities at locations with a high concentration of foreign owned establishments and the stability of employment at exporting establishments. A 1 per cent increase in the concentration of foreign owned establishments at potential migration destinations is associated with a 0.2 percentage point increase in the migration rate, and a 1 per cent increase in exporter employment predicts a 0.2 percentage point reduced probability of migration.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2008/rp2008-22.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/22.

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Length: 32 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:unu:wpaper:rp2008-22
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  1. Naércio Aquino Menezes-Filho & Marc-Andreas Muendler & Garey Ramey, 2008. "The Structure of Worker Compensation in Brazil, with a Comparison to France and the United States," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 324-346, May.
  2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, June.
  3. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
  4. Muendler, Marc-Andreas, 2007. "Labor Reallocation in Response to Trade Reform," University of California at San Diego, Economics Working Paper Series qt3cm38535, Department of Economics, UC San Diego.
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  6. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
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  8. Meier, Gearld & Rauch, James E., 2005. "Leading Issues in Economic Development," OUP Catalogue, Oxford University Press, edition 8, number 9780195179606, March.
  9. Jennifer P. Poole, 2013. "Knowledge Transfers from Multinational to Domestic Firms: Evidence from Worker Mobility," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 393-406, May.
  10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  11. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
  12. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  13. Chun-Chung Au & Vernon Henderson, 2002. "How Migration Restrictions Limit Agglomeration and Productivity in China," NBER Working Papers 8707, National Bureau of Economic Research, Inc.
  14. Yap, Lorene Y L, 1976. "Internal Migration and Economic Development in Brazil," The Quarterly Journal of Economics, MIT Press, vol. 90(1), pages 119-37, February.
  15. Gian S. Sahota, 1968. "An Economic Analysis of Internal Migration in Brazil," Journal of Political Economy, University of Chicago Press, vol. 76, pages 218.
  16. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  17. Graham, Douglas H, 1970. "Divergent and Convergent Regional Economic Growth and Internal Migration in Brazil-1940-1960," Economic Development and Cultural Change, University of Chicago Press, vol. 18(3), pages 362-82, April.
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