Propensity Score Matching, a Distance-Based Measure of Migration, and the Wage Growth of Young Men

51 Pages Posted: 22 Feb 2005

See all articles by John C. Ham

John C. Ham

National University of Singapore (NUS) - Department of Economics

Patricia Benton Reagan

Ohio State University (OSU) - Economics

Xianghong Li

York University - Department of Economics

Date Written: June 2005

Abstract

This paper estimates the effect of U.S. internal migration on real wage growth between the movers' first and second jobs. Our analysis of migration differs from previous research in three important aspects. First, we exploit the confidential geocoding in the National Longitudinal Surveys of Youth 1979 (NLSY79) to obtain a distance-based measure. Second, we let the effect of migration on wage growth differ by schooling level. Third, we use propensity score matching to measure the effect of migration on the wages of those who move.

We develop an economic model and use it to (i) assess the appropriateness of matching as an econometric method for studying migration and (ii) choose the conditioning variables used in the matching procedure. Our data set provides a rich array of variables on which to match. We find a significant effect of migration on the wage growth of college graduates of 10 percent and a marginally significant effect for high school dropouts of -12 percent. If we use a measure of migration based on moving across either county lines or state lines, the significant effects of migration for college graduates and dropouts disappear.

Keywords: Propensity score matching, distance-based migration, wage growth

JEL Classification: J6, J3, C4

Suggested Citation

Ham, John C. and Reagan, Patricia Benton and Li, Xianghong, Propensity Score Matching, a Distance-Based Measure of Migration, and the Wage Growth of Young Men (June 2005). IEPR Working Paper No. 05.13; FRB of New York Staff Report No. 212, June 2005. Available at SSRN: https://ssrn.com/abstract=671062

John C. Ham (Contact Author)

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore

Patricia Benton Reagan

Ohio State University (OSU) - Economics ( email )

1945 N. High St.
Columbus, OH 43210-1172
United States

Xianghong Li

York University - Department of Economics ( email )

4700 Keele St.
Toronto, Ontario M3J 1P3
Canada

Register to save articles to
your library

Register

Paper statistics

Downloads
308
Abstract Views
2,695
rank
98,919
PlumX Metrics