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The Effects of Relocation on Wages: A Decomposition Analysis

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  • Asma, Hyder

Abstract

This article estimates the wage differentials between the natives and the relocated workers. Nationwide Pakistan Labor Force Survey 2005–06 has been used with a total sample of 10,401 working individuals. Two wage equations are estimated for those living in that area since birth or those who relocated during the last 10 years or so. Oaxaca-Binder methodology has been used for decomposition analysis. This decomposition analysis further helps to investigate the ‘treatment’ and ‘endowment effect’. The overall decomposition results are in favour of native workers.

Suggested Citation

  • Asma, Hyder, 2008. "The Effects of Relocation on Wages: A Decomposition Analysis," MPRA Paper 19571, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19571
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    File URL: https://mpra.ub.uni-muenchen.de/19571/1/MPRA_paper_19571.pdf
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    References listed on IDEAS

    as
    1. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
    2. Ather Maqsood Ahmed & Ismail Sirageldin, 1993. "Socio-economic Determinants of Labour Mobility in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(2), pages 139-157.
    3. Mohammad, Irfan & Demery, Lionel & Ghulam Mohammad, Arif & Farooqui, Furqan Ahmad & Tariq, Javed & Haq, Rashida & Khan, Ghani, 1983. "Migration Patterns in Pakistan: Preliminary Results from the PLM Survey, 1979," MPRA Paper 39606, University Library of Munich, Germany.
    4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
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    More about this item

    Keywords

    Relocation; Migration; Wage Gap;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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