%0 Report
        %A Borjas, George J.
%A Kauppinen, Ilpo
%A Poutvaara, Panu
        %T Self‐Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics
        %D 2015
        %8 2015 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 9434
        %U https://www.iza.org/publications/dp9434
        %X We show that the Roy model has more precise predictions about the self-selection of migrants than previously realized. The same conditions that have been shown to result in positive or negative selection in terms of expected earnings also imply a stochastic dominance relationship between the earnings distributions of migrants and non-migrants. We use the Danish full population administrative data to test the predictions. We find strong evidence of positive self-selection of emigrants in terms of pre-emigration earnings: the income distribution for the migrants almost stochastically dominates the distribution for the non-migrants. This result is not driven by immigration policies in destination countries. Decomposing the self-selection in total earnings into self-selection in observable characteristics and self-selection in unobservable characteristics reveals that unobserved abilities play the dominant role.
        %K international migration
%K Roy model
%K self-selection