The internal relocation premium: are migrants positively or negatively selected? Evidence from Italy

Abstract

Abstract• : This paper analyzes the wage returns from internal migration for recent graduates inItaly. We employ a switching regression model that accounts for the endogeneity of the individual's choice to relocate to get a job after graduation: the omission of this selection decision can lead to biased estimates, as there is potential correlation between earnings and unobserved traits exerting an influence on the decision to migrate. The empirical results sustain the appropriateness of the estimation technique and show that there is a significant pay gap between migrants and nonmigrants; migrants seem to be positively selected and the migration premium is downward biased through OLS estimates. The endogeneity of migration shows up both as a negative intercept effect and as a positive slope effect, the second being larger then the first: bad knowledge of the local labor market and financial constraints lead migrants to accept a low basic wage but, due to relevant returns to their characteristics, they finally obtain an higher wage then the others.

Educational qualifications mismatch in Europe. Is it demand or supply driven?

“…Then, we decided not to use both variables as instruments for all countries, but we choose the better instrument case by case. Following the suggestion of Cutillo and Ceccarelli (2010), we checked the validity of the instruments by using the approach proposed by Dolton and Vignoles (2002). According to these authors, a valid instrument must be uncorrelated with the error term of the outcome equation, and thus it should not affect the risk of overeducation conditional on the included explanatory variables.…”

Migração, Seleção e Diferenciais de Rendimentos do Trabalho no Centro-Oeste do Brasil – 2000/2010

“…O Quadro 01 apresenta as variáveis selecionadas, dependentes e explicativas de controle empregadas no modelo. Ressalta-se que tais variáveis refletem aspectos da dinâmica socioeconômica e demográfica no território, e foram escolhidas com base na literatura que estuda o tema (MINCER, 1978;HECKMAN, 1979;FREGUGLIA, 2007;CUTILLO;CECCARELLI, 2012;GAMA;MACHADO, 2014;SILVA FILHO, 2017;SILVA;CAVALCANI;SILVA FILHO, 2019).…”

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Wage returns to interregional mobility among Ph.D graduates: Do occupations matter?

“…They found that migration for work is the most relevant driver of wage premium; considerably smaller is the contribution of migration for study and even negative the effect on wages of the “go back home” pattern of mobility following an initial mobility for study. In the same vein, Cutillo and Ceccarelli () analysed the wage returns from internal migration for a sample of graduates. They documented positive self‐selection into migration arguing that movers are likely to be more motivated and able than their peers.…”