Temporary and permanent migrant selection: Theory and evidence of ability-search cost dynamics

Joyce J. Chen, Katrina Kosec, Valerie Mueller

Research output: Contribution to journalArticle

2 Scopus citations

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.

Original languageEnglish (US)
JournalReview of Development Economics
DOIs
StateAccepted/In press - Jan 1 2019

Keywords

  • migration
  • networks
  • Pakistan
  • self-selection

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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