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Life‐Cycle Wage Growth and Internal Migration

Year: 2025

Type: article

Abstract: ABSTRACT I document new facts on life‐cycle wage growth within three countries: Brazil, Mexico, and the United States. In every case, I find that experience–wage profiles are steeper in rich states. Differences in education and industry mix can account for a large share of the covariance between income and profile steepness in both developing countries, while differences in occupations are key in every case. Using a general equilibrium model, I estimate meaningful productivity gains from inducing migration to places with better learning environment and find that migration costs are important in explaining cross‐country differences in life‐cycle wage growth.

Source: International Economic Review

DOI: 10.1111/iere.12775

Author: Alberto Rivera‐Padilla

Institution: Tulane University

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,570