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Title: A Dynamic Perspective on the Relationship Between Mobility, Wages and Education

Citation Type: Working Paper

Publication Year: 2012

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Abstract: Motivated by large educational di fferences in geographic mobility, this paper considers a simple dynamic extension of the Roy model, where worker migration and wages are jointly determined at the individual level. According to the model, a labor income shock specifi c to a worker-location match is greater for more educated workers and accounts for large educational differences in mobility. The model also off ers a simple explanation for the relationship between mobility and wages of different age and educational groups. The wage gap between movers and stayers is essential in quantifying multi-sector models. In the model, overall mobility and the college wage premium are positively related, a prediction consistent with cross-country data.

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Authors: Lkhagvasuren, Damba

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Institution: Concordia University

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Publisher Location: Montreal, Canada

Data Collections: IPUMS USA, IPUMS CPS

Topics: Education, Labor Force and Occupational Structure, Migration and Immigration

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