This paper deals with the impact of migration on wages. We introduce a spatial dimension into the job search framework, so that the agent faces neither the same job offer distribution nor the same search costs when looking for a job inside his local labor market. This is in comparison to the agent searching outside his local labor market, where migration costs are a factor. We estimate wage equations in which we introduce the decision to migrate as a binary choice, and later as a polychotomic choice (stayer/mover from provinces to Paris/mover from provinces to provinces). We find no selection effect for people with low levels of education, and a positive selection effect for highly educated migrants. When we distinguish the migration destination for highly educated from provinces, we find a hierarchical effect, that is, the selection effect is higher for men who migrate to Paris than for those who migrate to other provinces.
This paper provides supportive evidence to the notion that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce specialists occupations are over-represented in large cities. Using census data for French cities, we find strong empirical support for this prediction. ABSTRACT: This paper provides some evidence that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce occupations are over-represented in large cities. Using census data for French cities, we then provide strong empirical support for this prediction.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.