Why is the Roy-Borjas Model Unable to Predict International Migrant Selection on Education? Evidence from Urban and Rural Mexico

27 Pages Posted: 1 Aug 2023

See all articles by Stefan Leopold

Stefan Leopold

University of Kiel

Jens Ruhose

University of Kiel

Simon Wiederhold

Halle Institute for Economic Research; Martin Luther University of Halle-Wittenberg

Multiple version iconThere are 2 versions of this paper

Date Written: 2023

Abstract

The Roy-Borjas model predicts that international migrants are less educated than nonmigrants because the returns to education are generally higher in developing (migrant-sending) than in developed (migrant-receiving) countries. However, empirical evidence often shows the opposite. Using the case of Mexico-U.S. migration, we show that this inconsistency between predictions and empirical evidence can be resolved when the human capital of migrants is assessed using a two-dimensional measure of occupational skills rather than by educational attainment. Thus, focusing on a single skill dimension when investigating migrant selection can lead to misleading conclusions about the underlying economic incentives and behavioural models of migration.

Keywords: international migration, selection, occupational skills, education

JEL Classification: F220, O150, J610, J240

Suggested Citation

Leopold, Stefan and Ruhose, Jens and Wiederhold, Simon, Why is the Roy-Borjas Model Unable to Predict International Migrant Selection on Education? Evidence from Urban and Rural Mexico (2023). CESifo Working Paper No. 10588, Available at SSRN: https://ssrn.com/abstract=4527563 or http://dx.doi.org/10.2139/ssrn.4527563

Stefan Leopold (Contact Author)

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, 24118
Germany

Jens Ruhose

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Simon Wiederhold

Halle Institute for Economic Research ( email )

P.O. Box 11 03 61
Kleine Maerkerstrasse 8
D-06017 Halle, 06108
Germany

Martin Luther University of Halle-Wittenberg ( email )

Emil-Abderhalden-Str. 7
Halle an der Saale
06099 Halle (Saale), DE Sachsen-Anhalt 06099
Germany

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