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Propensity Score Matching, a Distance-Based Measure of Migration, and the Wage Growth of Young Men

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  • John C. Ham
  • Xianghong Li
  • Patricia B. Reagan

Abstract

Our analysis of migration differs from previous research in three important aspects. First, we exploit the confidential geocoding in the NLSY79 to obtain a distance-based measure. Second, we let the effect of migration on wage growth differ by schooling level. Third, we use propensity score matching to measure the effect of migration on the wages of those who move. We develop an economic model and use it to (i) assess the appropriateness of matching as an econometric method for studying migration and (ii) choose the conditioning variables used in the matching procedure. Our data set provides a rich array of variables on which to match. We find a significant effect of migration on the wage growth of college graduates of 10 percent, and a marginally significant effect for high school dropouts of –12 percent. If we use either a measure of migration based on moving across county lines or state lines, the significant effects of migration for college graduates and dropouts disappear.

Suggested Citation

  • John C. Ham & Xianghong Li & Patricia B. Reagan, 2004. "Propensity Score Matching, a Distance-Based Measure of Migration, and the Wage Growth of Young Men," IEPR Working Papers 05.13, Institute of Economic Policy Research (IEPR).
    • Handle: RePEc:scp:wpaper:05-13
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    2. Jennifer Hunt, 2004. "Are migrants more skilled than non-migrants? Repeat, return, and same-employer migrants," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 830-849, November.
    3. Rizwana Siddiqui, 2013. "Impact Evaluation of Remittances for Pakistan: Propensity Score Matching Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(1), pages 17-44.
    4. Cécile Détang‐Dessendre & Carine Drapier & Hubert Jayet, 2004. "The Impact of Migration on Wages: Empirical Evidence from French Youth," Journal of Regional Science, Wiley Blackwell, vol. 44(4), pages 661-691, November.
    5. Tingting Liu & Hong Feng & Elizabeth Brandon, 2018. "Would you like to leave Beijing, Shanghai, or Shenzhen? An empirical analysis of migration effect in China," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-20, August.
    6. Randall Kuhn & Bethany Everett & Rachel Silvey, 2011. "The Effects of Children’s Migration on Elderly Kin’s Health: A Counterfactual Approach," Demography, Springer;Population Association of America (PAA), vol. 48(1), pages 183-209, February.
    7. Zaiceva, Anzelika, 2006. "Self-Selection and the Returns to Geographic Mobility: What Can Be Learned from the German Reunification "Experiment"," IZA Discussion Papers 2524, Institute of Labor Economics (IZA).
    8. Acosta, Pablo, 2006. "Labor supply, school attendance, and remittances from international migration : the case of El Salvador," Policy Research Working Paper Series 3903, The World Bank.
    9. Sonia Laszlo & Eric Santor, 2004. "Internal Migration and Borrowing Constraints: Evidence from Peru," Development and Comp Systems 0411022, University Library of Munich, Germany.
    10. Peter McHenry, 2014. "The Geographic Distribution Of Human Capital: Measurement Of Contributing Mechanisms," Journal of Regional Science, Wiley Blackwell, vol. 54(2), pages 215-248, March.
    11. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    12. Arthur Grimes & Judd Ormsby & Kate Preston, 2017. "Wages, Wellbeing and Location: Slaving Away in Sydney or Cruising on the Gold Coast," Working Papers 17_07, Motu Economic and Public Policy Research.
    13. Demiralp, Berna, 2009. "The Impact of Information on Migration Outcomes," MPRA Paper 16121, University Library of Munich, Germany.
    14. repec:rre:publsh:v:40:y:2010:i:1:p:5-26 is not listed on IDEAS
    15. Cory Koedel & Rachana Bhatt, 2011. "Large-Scale Evaluations of Curricular Effectiveness: The Case of Elementary Mathematics in Indiana," Working Papers 1122, Department of Economics, University of Missouri, revised 31 Jan 2012.
    16. Hernán & Dusan, 2014. "Migración interna y diferenciales de ingreso: evidencia para Bogotá (Colombia) a partir de métodos de emparejamiento," Documentos de Trabajo en Economia y Ciencia Regional 48, Universidad Catolica del Norte, Chile, Department of Economics, revised Mar 2014.
    17. L. Blackburn, McKinley, 2006. "The impact of internal migration on married couples’ earnings in Britain, with a comparison to the United States," ISER Working Paper Series 2006-24, Institute for Social and Economic Research.
    18. Chung-Hua Shen & Yuan Chang, 2009. "Ambition Versus Conscience, Does Corporate Social Responsibility Pay off? The Application of Matching Methods," Journal of Business Ethics, Springer, vol. 88(1), pages 133-153, April.
    19. K. Bruce Newbold & W. Mark Brown, 2012. "Testing and Extending the Escalator Hypothesis: Does the Pattern of Post-migration Income Gains in Toronto Suggest Productivity and/or Learning Effects?," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3447-3465, November.
    20. Mahasuweerachai, Phumsith & Whitacre, Brian E. & Shideler, David W., 2009. "Does Broadband Access Impact Population Growth in Rural America?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49303, Agricultural and Applied Economics Association.
    21. Adnan M. S. Fakir & Naveen Abedin, 2021. "Empowered by Absence: Does Male Out-migration Empower Female Household Heads Left Behind?," Journal of International Migration and Integration, Springer, vol. 22(2), pages 503-527, June.

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    More about this item

    Keywords

    Propensity score matching; distance-based migration; wage growth;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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