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Self-Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics

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  • Poutvaara, Panu
  • Borjas, George
  • Kauppinen, Ilpo

Abstract

This paper uses Danish full population register data from 1995 to 2001 to analyze self-selection of migrants from Denmark. We find that Danish emigrants are more educated and have higher pre-emigration earnings than non-migrants. The earnings of emigrants are not higher only on average, but the earnings distribution for emigrants stochastically dominates that of non-migrants. Furthermore, we also find positive self-selection in terms of residuals from earnings regressions. These results are consistent with the positive selection hypothesis for migrants from a rich and equal country derived from the Roy model. We also derive the stochastic dominance result from the model.

Suggested Citation

  • Poutvaara, Panu & Borjas, George & Kauppinen, Ilpo, 2015. "Self-Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113140, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc15:113140
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    Citations

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    Cited by:

    1. Martin Junge & Martin D. Munk & Panu Poutvaara, 2013. "International Migration of Couples," Norface Discussion Paper Series 2013018, Norface Research Programme on Migration, Department of Economics, University College London.
    2. repec:spr:ijphth:v:63:y:2018:i:3:d:10.1007_s00038-017-1010-5 is not listed on IDEAS
    3. Ilpo Kauppinen & Panu Poutvaara, 2012. "Preferences for Redistribution among Emigrants from a Welfare State," ifo Working Paper Series 120, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Panu Poutvaara & Daniela Wech, 2017. "Integrating Refugees into the Labor Market – a Comparison of Europe and the United States," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(4), pages 32-43, 02.
    5. Martin Munk & Till Nikolka & Panu Poutvaara, 2017. "International Family Migration and the Dual-Earner Model," CReAM Discussion Paper Series 1703, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    6. Alexander Patt & Jens Ruhose & Simon Wiederhold & Miguel Flores, 2017. "International Emigrant Selection on Occupational Skills," CESifo Working Paper Series 6527, CESifo Group Munich.
    7. Gabriel Felbermayr, 2016. "Seizing the Opportunity," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(3), pages 16-26, December.
    8. repec:ces:ifodic:v:14:y:2017:i:4:p:19267786 is not listed on IDEAS

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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