Work

Migration magnet: the role of work experience in rural–urban wage differentials

Year: 2015

Type: article

Abstract: This study uses the nationally representative Mexican Family Life Survey (MxFLS) to identify systematic differences in earnings returns to human capital endowments for formal and informal sector workers in rural and urban Mexico. Returns to experience are critical in explaining the large urban wage gap in a Blinder-Oaxaca decomposition and indeed drive pull migration from the rural informal sector to the urban informal sector, exacerbating urban population congestion in already over-crowded main cities. Targeted rural industrial planning is essential to offset pull migration and ensure a more balanced urban/rural development through incentives. JEL classification:J24, J31, R23, Q15

Source: IZA Journal of Migration

DOI: 10.1186/s40176-015-0046-7

Authors: Maren M. Michaelsen, John P. Haisken-DeNew

Institutions: Ruhr University Bochum, The University of Melbourne

Language: English

Topic: Migration and Labor Dynamics

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth, Sustainable cities and communities

Open Access status: hybrid

Estimated APC paid: $1,202