Returns to Regional Migration: Causal Effect or Selection on Wage Growth?

Human capital theory predicts pecuniary returns to regional migration, but also positive self-selection of migrants. Therefore, when estimating the causal effect of migration one has to take care of potential self-selection. Several authors recommend using fixed effects models thereby controlling for time constant unobserved heterogeneity. However, if selection operates not only on wage level but also on wage growth conventional fixed effects models are also biased. In this paper we want to investigate, whether migrants are self-selected on wage growth and if this biases conventional fixed effects estimates of the returns to migration. We use data from the SOEP 1984 – 2010. First we analyze the time pattern of the wage differential between migrants and stayers to see whether they are on different wage trajectories. Second we introduce a fixed effects model with individual slopes to investigate whether conventional results are biased.

Standort
Deutsche Nationalbibliothek Frankfurt am Main
Umfang
Online-Ressource
Sprache
Englisch

Erschienen in
Returns to Regional Migration: Causal Effect or Selection on Wage Growth? ; volume:133 ; number:2 ; year:2013 ; pages:227-238
Schmollers Jahrbuch ; 133, Heft 2 (2013), 227-238

Urheber
Kratz, Fabian
Brüderl, Josef

DOI
10.3790/schm.133.2.227
URN
urn:nbn:de:101:1-2023013010212281645314
Rechteinformation
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Letzte Aktualisierung
15.08.2025, 07:25 MESZ

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