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Globalization and Formal Sector Migration in Brazil

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Author Info
Aguayo-Tellez, Ernesto
Muendler, Marc-Andreas
Poole, Jennifer Pamela

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Abstract

We use novel linked employer?employee data to study the relationship between globalization and formal sector interstate migration for Brazil. We estimate the worker?s multichoice migration problem and document that previously unobserved employer covariates are significant predictors associated with migration flows. Our results provide support for the idea that globalization acts on internal migration through the growth of employment opportunities at locations with a high concentration of foreign owned establishments and the stability of employment at exporting establishments. A 1 per cent increase in the concentration of foreign owned establishments at potential migration destinations is associated with a 0.2 percentage point increase in the migration rate, and a 1 per cent increase in exporter employment predicts a 0.2 percentage point reduced probability of migration.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2008/rp2008-22.pdf
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Publisher Info
Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number RP2008/22.

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Length: 32 pages
Date of creation: 2008
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Handle: RePEc:unu:wpaper:rp2008-22

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Related research
Keywords: migration; globalization; policy reforms; Brazil;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
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  3. Gian S. Sahota, 1968. "An Economic Analysis of Internal Migration in Brazil," Journal of Political Economy, University of Chicago Press, vol. 76, pages 218. [Downloadable!] (restricted)
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  5. Marc-Andreas Muendler, 2007. "Labor Reallocation in Response to Trade Reform," University of California at San Diego, Economics Working Paper Series 2007-02, Department of Economics, UC San Diego. [Downloadable!]
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