IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp-2019-113.html
   My bibliography  Save this paper

Migrants leaving mega-cities: Where they move and why prices matter

Author

Listed:
  • Eva-Maria Egger

Abstract

Traditional economic models predict rural to urban migration during the structural transformation of an economy. In middle-income countries, it is less clear which direction of migration to expect. In this paper I show that in Brazil as many people move out of as into metropolitan cities, and they mostly move to mid-sized towns. I estimate the determinants of out-migrants' destination choice, accounting for differences in earnings, living costs, and amenities, and I test whether the migrants gain economically by accepting lower wages but enjoying lower living costs.

Suggested Citation

  • Eva-Maria Egger, 2019. "Migrants leaving mega-cities: Where they move and why prices matter," WIDER Working Paper Series wp-2019-113, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2019-113
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp-2019-113.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patricio Aroca & William F. Maloney, 2005. "Migration, Trade, and Foreign Direct Investment in Mexico," The World Bank Economic Review, World Bank, vol. 19(3), pages 449-472.
    2. Luc Christiaensen & Joachim De Weerdt & Ravi Kanbur, 2017. "Cities, towns, and poverty: Migration equilibrium and income distribution in a Todaro-type model with multiple destinations," Working Papers 434, ECINEQ, Society for the Study of Economic Inequality.
    3. Luc Christiaensen & Joachim Weerdt & Yasuyuki Todo, 2013. "Urbanization and poverty reduction: the role of rural diversification and secondary towns," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 435-447, July.
    4. Foguel, Miguel N. & Gill, Indermit & Mendonça, Rosane & Barros, Ricardo Paes de, 2000. "The Public-Private Wage Gap in Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 54(4), October.
    5. Ferreira, Francisco H. G. & Leite, Phillippe G. & Litchfield, Julie A., 2008. "The Rise And Fall Of Brazilian Inequality: 1981–2004," Macroeconomic Dynamics, Cambridge University Press, vol. 12(S2), pages 199-230, September.
    6. Laura Hering & Rodrigo Paillacar, 2016. "Does Access to Foreign Markets Shape Internal Migration? Evidence from Brazil," The World Bank Economic Review, World Bank, vol. 30(1), pages 78-103.
    7. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    8. Marcel Fafchamps & Forhad Shilpi, 2013. "Determinants of the Choice of Migration Destination," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 388-409, June.
    9. Lorene Yap, 1976. "Internal Migration and Economic Development in Brazil," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 119-137.
    10. Richard P.C. Brown & Eliana Jimenez, 2008. "Estimating the net effects of migration and remittances on poverty and inequality: comparison of Fiji and Tonga," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(4), pages 547-571.
    11. Melanie Morten & Jaqueline Oliveira, 2016. "Paving the Way to Development: Costly Migration and Labor Market Integration," NBER Working Papers 22158, National Bureau of Economic Research, Inc.
    12. Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
    13. Fally, Thibault & Paillacar, Rodrigo & Terra, Cristina, 2010. "Economic geography and wages in Brazil: Evidence from micro-data," Journal of Development Economics, Elsevier, vol. 91(1), pages 155-168, January.
    14. Adams, Richard H. & Cuecuecha, Alfredo, 2013. "The Impact of Remittances on Investment and Poverty in Ghana," World Development, Elsevier, vol. 50(C), pages 24-40.
    15. Daniel da Mata & Uwe Deichmann & J. Vernon Henderson & Somik V. Lall & Hyoung G. Wang, 2005. "Examining the Growth Patterns of Brazilian Cities," Discussion Papers 1113, Instituto de Pesquisa Econômica Aplicada - IPEA.
    16. Giannetti, Mariassunta, 2003. "On the mechanics of migration decisions: skill complementarities and endogenous price differentials," Journal of Development Economics, Elsevier, vol. 71(2), pages 329-349, August.
    17. Ham, John C. & Li, Xianghong & Reagan, Patricia B., 2011. "Matching and semi-parametric IV estimation, a distance-based measure of migration, and the wages of young men," Journal of Econometrics, Elsevier, vol. 161(2), pages 208-227, April.
    18. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    19. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    20. Angus Deaton & Olivier Dupriez, 2011. "Spatial price differences within large countries," Working Papers 1321, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    21. Aguayo-Téllez, Ernesto & Muendler, Marc-Andreas & Poole, Jennifer P., 2010. "Globalization and Formal Sector Migration in Brazil," World Development, Elsevier, vol. 38(6), pages 840-856, June.
    22. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    23. repec:pri:rpdevs:spatial_price_differences_in_large_countries-_10-jul_2011_complete is not listed on IDEAS
    24. repec:bla:econom:v:72:y:2005:i:285:p:39-67 is not listed on IDEAS
    25. Chao Li & John Gibson, 2014. "Spatial Price Differences and Inequality in the People's Republic of China: Housing Market Evidence," Asian Development Review, MIT Press, vol. 31(1), pages 92-120, March.
    26. repec:lic:licosd:39517 is not listed on IDEAS
    27. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
    28. Lall, Somik V. & Timmins, Christopher & Yu, Shouyue, 2009. "Connecting lagging and leading regions : the role of labor mobility," Policy Research Working Paper Series 4843, The World Bank.
    29. Barham, Bradford & Boucher, Stephen, 1998. "Migration, remittances, and inequality: estimating the net effects of migration on income distribution," Journal of Development Economics, Elsevier, vol. 55(2), pages 307-331, April.
    30. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Britta Rude & Bennet Niederhöfer & Fabio Ferrara, 2020. "ifo Migrationsmonitor: Entwaldung und Migration," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(09), pages 66-74, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Egger Eva-Maria, 2021. "Migrating out of mega-cities: Evidence from Brazil," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-35, January.
    2. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    3. Eric Rougier & Nicolas Yol, 2018. "The volatility effect of diaspora’s location: A migration portfolio approach," Cahiers du GREThA (2007-2019) 2018-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    4. Cristian Bartolucci & Mathis Wagner & Claudia Villosio, 2013. "Who Migrates and Why?," Carlo Alberto Notebooks 333, Collegio Carlo Alberto.
    5. Isabelle Chort & Jean-Noël Senne, 2012. "Intra-household Selection into Migration : Evidence from a Matched Sample of Migrants and Origin Households in Senegal," Post-Print hal-01516775, HAL.
    6. Alexandra SCHAFFAR, 2020. "Introduction - Les questions soulevées en économie des migrations," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 51, pages 5-16.
    7. Fu, Yuming & Gabriel, Stuart A., 2012. "Labor migration, human capital agglomeration and regional development in China," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 473-484.
    8. Moav, Omer & Gould, Eric, 2008. "When is "Too Much" Inequality Not Enough? The Selection of Israeli Emigrants," CEPR Discussion Papers 6955, C.E.P.R. Discussion Papers.
    9. Thomas Gries & Manfred Kraft & Christina Pieck, 2011. "Interregional migration, self-selection and the returns to education in Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 707-732, June.
    10. Matthias Parey & Jens Ruhose & Fabian Waldinger & Nicolai Netz, 2017. "The Selection of High-Skilled Emigrants," The Review of Economics and Statistics, MIT Press, vol. 99(5), pages 776-792, December.
    11. Thierry Baudassé & Rémi Bazillier & Ismaël Issifou, 2018. "Migration And Institutions: Exit And Voice (From Abroad)?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 727-766, July.
    12. Bertoli, S. & Fernández-Huertas Moraga, J. & Ortega, F., 2013. "Crossing the border: Self-selection, earnings and individual migration decisions," Journal of Development Economics, Elsevier, vol. 101(C), pages 75-91.
    13. Brian Cushing & Jacques Poot, 2004. "Crossing boundaries and borders: Regional science advances in migration modelling," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 317-338, Springer.
    14. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2019. "Locus of control and internal migration," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    15. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    16. Batista, Catia & McKenzie, David, 2023. "Testing classic theories of migration in the lab," Journal of International Economics, Elsevier, vol. 145(C).
    17. Milo Bianchi, 2013. "Immigration Policy and Self-Selecting Migrants," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 1-23, February.
    18. Alasalmi, Juho, 2023. "Self-selection of Job-to-job Migrants on Match Quality," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277633, Verein für Socialpolitik / German Economic Association.
    19. Laura Hering & Rodrigo Paillacar, 2016. "Does Access to Foreign Markets Shape Internal Migration? Evidence from Brazil," The World Bank Economic Review, World Bank, vol. 30(1), pages 78-103.
    20. Corneo, Giacomo & Neidhöfer, Guido, 2021. "Income redistribution and self-selection of immigrants," Journal of Public Economics, Elsevier, vol. 198(C).

    More about this item

    Keywords

    Brazil; Internal migration; Prices; Secondary towns;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp-2019-113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.