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Globalization and Formal Sector Migration in Brazil

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  • Aguayo-Téllez, Ernesto
  • Muendler, Marc-Andreas
  • Poole, Jennifer P.

Abstract

Summary Comprehensive linked employer-employee data allow us to study the relationship between domestic formal sector migration in Brazil and globalization. Considerable worker flows in the formal labor market during 1997-2001 are directed toward lower income regions--the reverse flows of those often posited for informal labor markets. Estimation of the worker's multi-choice migration problem shows that previously unobserved employer covariates are significant predictors associated with migration flows. These results support the idea that globalization acts on internal migration through job stability at exporting establishments and employment opportunities at locations with a concentration of foreign owned establishments. A 1% increase in exporter employment predicts a 0.3% reduced probability of migration. A 1% increase in the concentration of foreign owned establishments at potential destinations is associated with a 0.2% increase in the migration rate.

Suggested Citation

  • Aguayo-Téllez, Ernesto & Muendler, Marc-Andreas & Poole, Jennifer P., 2010. "Globalization and Formal Sector Migration in Brazil," World Development, Elsevier, vol. 38(6), pages 840-856, June.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:6:p:840-856
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    Cited by:

    1. World Bank, 2012. "World Development Report 2013 [Rapport sur le développement dans le monde 2013]," World Bank Publications - Books, The World Bank Group, number 11843.
    2. Naércio Aquino Menezes Filho & Marc-Andreas Muendler, 2007. "Labor Reallocation in Response to Trade Reform," CESifo Working Paper Series 1936, CESifo.
    3. Trevor Tombe & Jennifer Winter, "undated". "Fiscal Integration with Internal Trade: Quantifying the Effects of Equalizing Transfers," Working Papers 2013-28, Department of Economics, University of Calgary, revised 04 Oct 2018.
    4. Egger Eva-Maria, 2021. "Migrating out of mega-cities: Evidence from Brazil," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-35, January.
    5. Xiaodong Zhu & Trevor Tombe, 2015. "Trade, Migration and Regional Income Differences: Evidence from China," 2015 Meeting Papers 1534, Society for Economic Dynamics.
    6. Kwok Tong Soo, 2014. "Zipf, Gibrat and geography: Evidence from China, India and Brazil," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 159-181, March.
    7. Trevor Tombe & Xiaodong Zhu, 2019. "Trade, Migration, and Productivity: A Quantitative Analysis of China," American Economic Review, American Economic Association, vol. 109(5), pages 1843-1872, May.
    8. Laura Hering & Rodrigo Paillacar, 2016. "Does Access to Foreign Markets Shape Internal Migration? Evidence from Brazil," The World Bank Economic Review, World Bank, vol. 30(1), pages 78-103.
    9. Eva-Maria Egger, 2019. "Migrants leaving mega-cities: Where they move and why prices matter," WIDER Working Paper Series wp-2019-113, World Institute for Development Economic Research (UNU-WIDER).
    10. Almeida, Rita K. & Poole, Jennifer P., 2017. "Trade and labor reallocation with heterogeneous enforcement of labor regulations," Journal of Development Economics, Elsevier, vol. 126(C), pages 154-166.
    11. Ma, Xiao & Muendler, Marc-Andreas & Nakab, Alejandro, 2020. "Learning by Exporting and Wage Profiles: New Evidence from Brazil," MPRA Paper 109497, University Library of Munich, Germany, revised 31 Aug 2021.
    12. Miguel Flores & Mary Zey & Nazrul Hoque, 2013. "Economic Liberalization and Contemporary Determinants of Mexico's Internal Migration: An Application of Spatial Gravity Models," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(2), pages 195-214, June.

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