Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2014-07-07
Number: 14-084/VI
Author-Name: Laura Hering
Author-Workplace-Name: Erasmus University Rotterdam, the Netherlands
Author-Name: Rodrigo Paillacar
Author-Workplace-Name: University of Cergy-Pontoise, France
Title: Does Access to Foreign Markets shape Internal Migration? Evidence from Brazil
Abstract: This paper investigates how internal migration is a
affected by Brazil's increased integration into the world economy. We analyze the impact of regional differences in access to foreign demand on sector-specific bilateral migration rates between the Brazilian states for the years 1995 to 2003. Using international trade data, we compute a foreign market access indicator at the sectoral level, which is exogenous to domestic migration. A higher foreign market access is associated with a higher local labor demand and attracts workers via two potential channels: higher wages and new job opportunities. Our results show that both channels play a significant role in internal migration. Further, we find a heterogeneous impact across industries according to their comparative advantage on the world market. However, the impact of market access is robust only for low-educated wor kers. This finding is consistent with the fact that Brazil is exporting mainly goods that are intensive in unskilled labor.
Classification-JEL: F16, F66, R12, R23
Keywords: Regional migration, international trade, market access, Brazil
File-Url: https://papers.tinbergen.nl/14084.pdf
File-Format: application/pdf
File-Size: 514909 bytes
Handle: RePEc:tin:wpaper:20140084