Dual-earner migration. Earnings gains, employment and self-selection |
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Authors: | Birgitta Rabe |
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Institution: | (1) Institute for Social and Economic Research, University of Essex, Colchester, Essex, C04 3SQ, UK |
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Abstract: | This paper examines how spouses in dual-earner couples weigh each partner’s expected wage growth in the decision to migrate.
Previous research suggests that husbands’ job prospects dominate the migration choice irrespective of their relative earnings
potential. Based on British panel data, this paper employs an endogenous switching model and estimates wage differentials
of migrating vs. staying for husbands and wives corrected for double selectivity of migration and employment. Dual-earner
couples attach a positive weight to each partner’s expected wage gains when deciding to migrate. Moreover, migrant wives’
employment decreases temporarily, and there are significant selection effects in migration and employment amongst non-migrants. |
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