Temporary and Permanent Migrant Selection: Theory and Evidence of Ability‐Search Cost Dynamics

43 Pages Posted: 5 Jun 2020

See all articles by Joyce J. Chen

Joyce J. Chen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Katrina Kosec

International Food Policy Research Institute (IFPRI)

Valerie Martina Mueller

Arizona State University (ASU)

Multiple version iconThere are 3 versions of this paper

Date Written: November 2019

Abstract

We integrate two workhorses of the labor literature, the Roy and search models, to illustrate the implications of migration duration—specifically, whether it is temporary or permanent—for patterns of selection. Consistent with our stylized model, we show that temporary migrants are intermediately selected on education, with weaker selection on cognitive ability. In contrast, permanent migration is associated with strong positive selection on both education and ability, as it involves finer employee–employer matching and offers greater returns to experience. Networks are also more valuable for permanent migration, where search costs are higher. Labor market frictions explain observed network–skill interactions.

Keywords: migration, networks, Pakistan, self‐selection

Suggested Citation

Chen, Joyce J. and Kosec, Katrina and Mueller, Valerie Martina, Temporary and Permanent Migrant Selection: Theory and Evidence of Ability‐Search Cost Dynamics (November 2019). Review of Development Economics, Vol. 23, Issue 4, pp. 1477-1519, 2019, Available at SSRN: https://ssrn.com/abstract=3618494 or http://dx.doi.org/10.1111/rode.12617

Joyce J. Chen (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

HOME PAGE: http://www.aede.osu.edu/people/chen.1276

Katrina Kosec

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Valerie Martina Mueller

Arizona State University (ASU) ( email )

Farmer Building 440G PO Box 872011
Tempe, AZ 85287
United States

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