The Influence of Internal Migration on Male Earnings in Brazil, 1970–2000

41 Pages Posted: 22 Jun 2016

See all articles by Ernesto Amaral

Ernesto Amaral

RAND Corporation

Eduardo L. G. Rios-Neto

Federal University of Minas Gerais (UFMG) - Cedeplar

Joseph E. Potter

University of Texas at Austin - Population Research Center

Date Written: February 5, 2015

Abstract

This paper deals with the impact of internal migration flows on the earnings of male workers. The availability of jobs and income levels in sending and receiving areas also influence internal population flows. Thus, migration is an endogenous variable that cannot be simply introduced as an exogenous variable when estimating labor outcomes. A methodological approach is developed to introduce migration into our models, dealing with the issue of reverse causality between migration and earnings. We implement this strategy using the 1970–2000 Brazilian Demographic Censuses. Our findings reflect our initial hypothesis, indicating that migration flows have a negative impact on male earnings, when considering cohort size as a factor. A ten percent increase in migration rates would have reduced the wages of competing workers by up to three percent in 2000. These methodological strategies can be applied to other countries that have similar available migration data.

Keywords: internal migration, earnings, labour market, reverse causality, migration schedules

Suggested Citation

Amaral, Ernesto and Rios-Neto, Eduardo L. G. and Potter, Joseph E., The Influence of Internal Migration on Male Earnings in Brazil, 1970–2000 (February 5, 2015). RAND Working Paper Series WR- 1090. Available at SSRN: https://ssrn.com/abstract=2798873 or http://dx.doi.org/10.2139/ssrn.2798873

Ernesto Amaral (Contact Author)

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

Eduardo L. G. Rios-Neto

Federal University of Minas Gerais (UFMG) - Cedeplar ( email )

Rua Curitiba, 832, 9 andar
Belo Horizonte
30170-120 Minas Gerais
Brazil

Joseph E. Potter

University of Texas at Austin - Population Research Center ( email )

University of Texas
Austin, TX 78712
United States

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