TY  - JOUR
AU  - Grogger,Jeffrey
AU  - Hanson,Gordon H.
TI  - Income Maximization and the Selection and Sorting of International Migrants
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13821
PY  - 2008
Y2  - February 2008
UR  - http://www.nber.org/papers/w13821
L1  - http://www.nber.org/papers/w13821.pdf
N1  - Author contact info:
Jeffrey Grogger
Irving B. Harris Professor of Urban Policy
Harris School of Public Policy
University of Chicago
1155 E. 60th Street
Chicago, IL   60637
Tel: 773/542-3533
Fax: 773/702-0926
E-Mail: jgrogger@uchicago.edu

Gordon H. Hanson
IR/PS 0519
University of California, San Diego
9500 Gilman Drive
La Jolla, CA  92093-0519
Tel: 858/822-5087
Fax: 858/534-3939
E-Mail: gohanson@ucsd.edu
AB  - Two prominent features of international labor movements are that the more educated are more likely to emigrate (positive selection) and more-educated migrants are more likely to settle in destination countries with high rewards to skill (positive sorting). Using data on emigrant stocks by schooling level and source country in OECD destinations, we find that a simple model of income maximization can account for both phenomena. Results on selection show that migrants for a source-destination pair are more educated relative to non-migrants the larger is the absolute skill-related difference in earnings between the destination country and the source. Results on sorting indicate that the relative stock of more-educated migrants in a destination is increasing in the absolute earnings difference between high and low-skilled workers. We use our framework to compare alternative specifications of international migration, estimate the magnitude of migration costs by source-destination pair, and assess the contribution of wage differences to how migrants sort themselves across destination countries.
ER  -