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Are experience and schooling complementary? Evidence from migrants' assimilation in the Bangkok labor market

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  • Yamauchi, Futoshi

Abstract

"This paper models the assimilation process of migrants and shows evidence of the complementarity between their destination experience and upon-arrival human capital. Bayesian learning and dynamics of matching are modeled and empirically assessed, using panel data of wages from the Bangkok labor market in Thailand. The analysis incorporates (1) the heterogeneity of technologies and products, characteristic of urban labor markets, (2) imperfect information on migrants' types and skill demanded in the markets, and (3) migrants' optimal learning over time. Returns to destination experience emerge endogenously. Estimation results, which control migrants' selectivity by firstdifferencing procedures, show that (1) schooling returns are lower for migrants than for natives, (2) the accumulation of destination experience raises wages for migrants, (3) the experience effect is greater for more-educated agents, i.e., education and experience are complementary, and (4) the complementarity increases as destination experience accumulates. The results imply that more-educated migrants have higher learning efficiency and can perform tasks of greater complexity, ultimately yielding higher wage growth in the destination market. Simulations show that, due to the complementarity, wages for different levels of upon-arrival human capital diverge in the migrants' assimilation process." Author's Abstract"
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  • Yamauchi, Futoshi, 2004. "Are experience and schooling complementary? Evidence from migrants' assimilation in the Bangkok labor market," Journal of Development Economics, Elsevier, vol. 74(2), pages 489-513, August.
    • Handle: RePEc:eee:deveco:v:74:y:2004:i:2:p:489-513
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    Cited by:

    1. Mika Ueyama & Futoshi Yamauchi, 2009. "Marriage behavior response to prime-age adult mortality: evidence from malawi," Demography, Springer;Population Association of America (PAA), vol. 46(1), pages 43-63, February.
    2. Futoshi Yamauchi & Sakiko Tanabe, 2008. "Nonmarket networks among migrants: evidence from metropolitan Bangkok, Thailand," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 649-664, July.
    3. Qing Wang & Ting Ren & Ti Liu, 2019. "Training, skill-upgrading and settlement intention of migrants: Evidence from China," Urban Studies, Urban Studies Journal Limited, vol. 56(13), pages 2779-2801, October.
    4. Liu, Yanyan & Yamauchi, Futoshi, 2013. "Population density, migration, and the returns to human capital and land: Highlights from Indonesia," IFPRI discussion papers 1271, International Food Policy Research Institute (IFPRI).
    5. Piacentini, Mario, 2008. "Migration Enclaves, Schooling Choices and Social Mobility," MPRA Paper 8376, University Library of Munich, Germany.
    6. Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal & Dewina, Reno & Sumaryanto, Sony, 2011. "Are Schooling and Roads Complementary? Evidence from Income Dynamics in Rural Indonesia," World Development, Elsevier, vol. 39(12), pages 2232-2244.
    7. Armando J. Garcia Pires, 2015. "Brain Drain And Brain Waste," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 1-34, March.
    8. Liu, Yanyan & Yamauchi, Futoshi, 2014. "Population density, migration, and the returns to human capital and land: Insights from Indonesia," Food Policy, Elsevier, vol. 48(C), pages 182-193.
    9. Yamauchi, Futoshi, 2015. "Wage dynamics, turnover, and human capital : evidence from adolescent transition from school to work in the Philippines," Policy Research Working Paper Series 7184, The World Bank.
    10. Futoshi Yamauchi, 2016. "The Effects of Improved Roads on Wages and Employment: Evidence from Rural Labour Markets in Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(7), pages 1046-1061, July.
    11. Yamamura, Eiji, 2009. "Dynamics of social trust and human capital in the learning process: The case of the Japan garment cluster in the period 1968-2005," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 377-389, October.
    12. Valeria Groppo, 2014. "Internal Migration in Developing Countries," DIW Roundup: Politik im Fokus 31, DIW Berlin, German Institute for Economic Research.
    13. Yamauchi, Futoshi, 2014. "Roads, labor markets, and human capital : evidence from rural Indonesia," Policy Research Working Paper Series 7139, The World Bank.
    14. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    15. Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal & Dewina, Reno & Sumaryanto, Sony, 2010. "Are Schooling and Roads Complementary? Evidence from Rural Indonesia," Working Papers 10, JICA Research Institute.
    16. Yusuke Ono, 2006. "Technology adoption in a community of heterogeneous education level: Who are your good neighbors?," Economics Bulletin, AccessEcon, vol. 15(8), pages 1-11.
    17. Giovanni Porzio & Maria Vitale, 2007. "Exploring Nonlinearities in Path Models," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(6), pages 937-954, December.
    18. Kudo, Yuya, 2012. "Returns to migration : the role of educational attainment in rural Tanzania," IDE Discussion Papers 322, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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