Financial constraints, migration and inequality

Arbeitspapier

Although the self-selection of emigrants is determined by di¤erences in the returns to education, according to the celebrated Roy model, empirical evidence suggests that migrants tend to be favorably selected. This paper argues that financial con- straints might be useful to explain this controversy. These constraints might impose positive correlations between (i) wealth and education, and (ii) wealth and migra- tion, implying a positive bias in the empirical results. We also show that high levels of migration premium and return to education in the source country explain the migration of middle-class individuals, a situation in which migration increases in- equality in the home country.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Texto para discussão ; No. 498

Classification and Topics

• Classification: Wirtschaft
• Subject: migration ; financial constraints ; self-selection ; human capital ; Internationale Migration ; Bildungsertrag ; Migrationsforschung

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Assunção, Juliano J. ; Carvalho, Leandro S.
• Event: Veröffentlichung
• (who): Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio), Departamento de Economia
• (where): Rio de Janeiro
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/175983
• Last update: 10.03.2025, 11:41 AM CET