The Place Premium : Wage Differences for Identical Workers across the US Border
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World Bank, Washington, DC
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This paper compares the wages of workers
inside the United States to the wages of observably
identical workers outside the United States-controlling for
country of birth, country of education, years of education,
work experience, sex, and rural-urban residence. This is
made possible by new and uniquely rich microdata on the
wages of over two million individual formal-sector
wage-earners in 43 countries. The paper then uses five
independent methods to correct these estimates for
unobserved differences and introduces a selection model to
estimate how migrants' wage gains depend on their
position in the distribution of unobserved wage
determinants. Following all adjustments for selectivity and
compensating differentials, the authors estimate that the
wages of a Bolivian worker of equal intrinsic productivity,
willing to move, would be higher by a factor of 2.7 solely
by working in the United States. While this is the median,
this ratio is as high as 8.4 (for Nigeria). The paper
documents that (1) for many countries, the wage gaps caused
by barriers to movement across international borders are
among the largest known forms of wage discrimination; (2)
these gaps represent one of the largest remaining price
distortions in any global market; and (3) these gaps imply
that simply allowing labor mobility can reduce a given
household's poverty to a much greater degree than most
known in situ antipoverty interventions.
Palabras clave
ACCOUNTING, ADULT MALE, AGE CATEGORIES, AGE GROUPS, ANNUAL WAGE, AVERAGE EXCHANGE RATE, AVERAGE WAGE, CALCULATION, CALCULATIONS, CARPENTERS, CITIZEN, CITIZENS, CONSEQUENCES OF MIGRATION, CONSUMER, CONSUMPTION SMOOTHING, CONTRIBUTION, CONTRIBUTIONS, COST OF TRAVEL, COUNTRIES OF ORIGIN, COUNTRY OF DESTINATION, COUNTRY OF ORIGIN, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DIRECT COST, DISCRIMINATION, DISEQUILIBRIUM, DRIVERS, EARNING, EARNINGS, EARNINGS MEASURES, ECONOMIC GROWTH, ECONOMIC THEORY, EMPLOYMENT, EXCHANGE RATES, EXPECTED WAGE, FACTOR MARKETS, FAMILY MEMBERS, FEMALE WORKERS, FINANCIAL INSTRUMENTS, FORMAL SECTOR WAGE, FORMS OF DISCRIMINATION, FUNCTIONAL FORMS, GDP, GDP PER CAPITA, GENDER DISCRIMINATION, GLOBAL DEVELOPMENT, GROSS WAGES, HOUSEHOLD CONSUMPTION, HUMAN CAPITAL, IMMIGRANT, IMMIGRANTS, IMMIGRATION, INCOME, INCOME COUNTRIES, INCOME INEQUALITY, INCOME TAXES, INCOMES, INFORMAL SECTOR, INTERNATIONAL BORDERS, INTERNATIONAL PRICE, JOBS, LABOR COST, LABOR COSTS, LABOR INCOME, LABOR MARKET, LABOR MARKET DISCRIMINATION, LABOR MARKETS, LABOR MIGRATION, LABOR MOBILITY, LABORERS, LARGE FIRMS, LEVELS OF EDUCATION, LIFETIME, LOCAL CURRENCY, LOTTERY, LOW-INCOME, LOW-INCOME COUNTRY, LOW-INCOME FAMILIES, MAINTENANCE COSTS, MARGINAL PRODUCT, MARGINAL PRODUCTS, MARITAL STATUS, MATH, MEDICAL CARE, MIGRANTS, MIGRATION FLOWS, MIGRATION POLICY, MOVEMENTS OF PEOPLE, NATIONAL POPULATION, NUMBER OF WORKERS, OCCUPATION, OCCUPATIONS, OFFICIAL LANGUAGE, PERSONAL COMMUNICATION, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POOR HOUSEHOLDS, POOR PEOPLE, POVERTY REDUCTION, PRECEDING SECTION, PREVIOUS SECTION, PRODUCTIVITIES, PRODUCTIVITY, PROGRESS, PUBLIC GOOD, PURCHASING POWER, PURCHASING POWER PARITY, RACIAL DISCRIMINATION, REAL COST, REAL WAGE, REAL WAGES, REFUGEE, REFUGEES, REMITTANCES, REMUNERATION, RESEARCH ASSISTANCE, RESPECT, RETURN MIGRATION, RURAL RESIDENCE, SALARIES, SAVERS, SAVINGS, SAVINGS RATES, SEX, SOCIAL SECURITY, SOURCES OF INCOME, STATISTICAL ANALYSIS, STOCKS, TEMPORARY MIGRANTS, TEMPORARY MIGRATION, TEMPORARY WORKERS, TOTAL COMPENSATION, TOTAL WAGE, TRANSPORTATION, UNDERESTIMATES, UNEMPLOYED, UNPAID FAMILY WORKERS, URBAN AREAS, UTILITY FUNCTION, WAGE, WAGE DATA, WAGE DIFFERENTIALS, WAGE DISCRIMINATION, WAGE DISTRIBUTION, WAGE EFFECT, WAGE GAIN, WAGE GAINS, WAGE GAP, WAGE GAPS, WAGE RATE, WAGE RATES, WAGES, WOMAN, WORK EXPERIENCE, WORKER, WORKFORCE, WORTH