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IZA Discussion Paper No. 9639
January 2016
Temporary and Permanent Migrant Selection: Theory and Evidence of Ability-Search Cost Dynamics

published in: Review of Development Economics, 2019, 23 (4), 1477-1519

The migrant selection literature concentrates primarily on spatial patterns. This paper illustrates the implications of migration duration for patterns of selection by integrating two workhorses of the labor literature, a search model and a Roy model. Theory and empirics show temporary migrants are intermediately selected on education, with weaker selection on cognitive ability. Longer migration episodes lead to stronger positive selection on both education and ability, as its associated jobs involve finer employee-employer matching and offer greater returns to experience. Networks are more valuable for permanent migration, where search costs are higher. Labor market frictions explain observed complex network-skill interactions.

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Mark Fallak
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+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
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Christina Gathmann
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Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

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