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Author: Cosslett, Stephan
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Baumann, Robert William Cosslett, Stephan Reagan, Patricia Benton |
Measuring Returns to Migration Using the Method of Maximum Simulated Likelihood: An Application to Migration among Poor Whites Presented: Atlanta, GA, Population Association of America Annual Meetings, May 2002 Cohort(s): NLSY79 Publisher: Population Association of America Keyword(s): Disadvantaged, Economically; Employment; Endogeneity; Income; Migration; Migration Patterns; Wages Permission to reprint the abstract has not been received from the publisher. We estimate a three-equation model of wages, migration and employment using the method of maximum simulated likelihood for a sample of 1129 disadvantaged white males from the National Longitudinal Surveys of Youth 1979. We show that Appalachian natives experience higher returns to migration than comparably disadvantaged whites from the rest of the United States. Failure to treat migration as endogenous biases estimates of the returns to migration towards zero for both groups, with a larger bias for Appalachians. This suggests that individuals with lower earnings in their current location are more likely to migrate. Appalachian migrants experience an average increase in hourly wages of $2.29 per hour compared to an increase of $0.62 per hour (1990 dollars) for non-Appalachian poor white migrants. Although part of the large gain for Appalachian migrants reflects unmeasured differences in regional cost of living, there appears to be substantial returns to out-migration from Appalachia. |
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Bibliography Citation
Baumann, Robert William, Stephan Cosslett and Patricia Benton Reagan. "Measuring Returns to Migration Using the Method of Maximum Simulated Likelihood: An Application to Migration among Poor Whites." Presented: Atlanta, GA, Population Association of America Annual Meetings, May 2002. |