A self selection analysis of employed rural-metropolitan migrants in Paraguay
نویسنده
چکیده
Given the different income inequalities between rural, urban and metropolitan areas in Paraguay, the standard Roy model predicts the possibility that a selection bias of rural metropolitan migrants exists. Based on an extended Roy model, which allows for correlation between labor market characteristics and moving cost, I use a switching regression model to evaluate if migrants from rural to metropolitan areas are somehow selected with respect to unobserved characteristics. I find evidence that rural metropolitan migrants are negatively selected but this effect also depends on the definition from rural, urban and metropolitan areas. Moreover, potential wage differentials, unemployment rates, household characteristics like marital status; the number of children in household and the average years of family education are always relevant and significant determinants of rural urban/metropolitan migration in a structural form in Paraguay . JEL Classification: R23, J31, J61
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