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Self-Selectivity Problems in Interregional and Interindustry Migration in Canada

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  • M N Islam

    (Department of Economics, Concordia University, Loyola Campus, Montreal, Quebec H4B 1R6, Canada)

Abstract

The impact of selectivity bias on returns to migration between industries within or between regions is an important issue that remains more or less unresolved. Contrary to the commonly held belief that a migrant's decision to change his location is independent of his decision to change his industry of employment, this paper provides evidence that these movements are in fact interrelated. An analysis of migration that does not take account of this link may overlook the important implications of many socioeconomic variables in the migration process. Hence a comprehensive analysis of the various determinants of migration is performed. The determinants are classified under three groups—regional, industrial, and personal factors. The joint migration behaviour is considered as belonging to one of four mutually exclusive categories— change of location but not industry, change of industry but not the location, change of neither the location nor the industry, and change of both. The impact of individual determinants upon total as well as compound probability of each type of migration decision is analysed. Distinguishing among migration decisions provides a revealing picture of the returns to migration. The empirical findings reflect the presence of significant self-selection in migration decisions. The selectivity bias is found to be more pronounced in the case of industry migrants than for provincial migrants. Furthermore, it is also found that a positive bias is more likely to occur in the estimated earnings than is a negative bias. The existence of positive bias lends support to comparative advantages in migrant earnings. Given the estimates of earnings corresponding to various migration decisions, a rank ordering of the migrant categories is made. On the whole, migration between industries is found to result in a higher return than is migration between provinces.

Suggested Citation

  • M N Islam, 1985. "Self-Selectivity Problems in Interregional and Interindustry Migration in Canada," Environment and Planning A, , vol. 17(11), pages 1515-1532, November.
    • Handle: RePEc:sae:envira:v:17:y:1985:i:11:p:1515-1532
    DOI: 10.1068/a171515
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    References listed on IDEAS

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    2. Bartel, Ann P, 1979. "The Migration Decision: What Role Does Job Mobility Play?," American Economic Review, American Economic Association, vol. 69(5), pages 775-786, December.
    3. Lee, Lung-Fei & Trost, Robert P., 1978. "Estimation of some limited dependent variable models with application to housing demand," Journal of Econometrics, Elsevier, vol. 8(3), pages 357-382, December.
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