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Erschienen in:
Geography of Migration: An Introduction Kapitel lesen Erstes Kapitel lesen

2021 | OriginalPaper | Buchkapitel

11. Migration and Human Capital: The Role of Education in Interregional Migration: The Australian Case

verfasst von : Daniel Crown, Jonathan Corcoran, Alessandra Faggian

Erschienen in: The Economic Geography of Cross-Border Migration

Verlag: Springer International Publishing

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Abstract

This chapter seeks to distinguish between possible explanations for why internal migrants receive wage premiums or penalties post-migration. We use data from the Household Income and Labour Dynamics in Australia (HILDA), and individual fixed effects models to control for unobservable sorting of migrants. We decompose the return to migration into components attributable to a worker’s education versus their occupation, controlling for unobservable individual characteristics. Overall, we find that both education and occupations contribute a relatively equal amount to a worker’s return to interregional migration. When differentiated by the geography of origin and destination locations, we find that access to high-paying occupations and a higher return to education explain roughly equal shares of the return to migration for migrants who move from one major city to another. However, access occupations are the primary determinant of the wage premium received by migrants who move to remote/very remote regions in Australia.

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Vorheriges Kapitel The Role of Subjective Wellbeing in Cross-Border Migration
Nächstes Kapitel Effects of Immigration on Local Housing Markets
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Fußnoten
1
However, we note that consistent with observations in the United States, migration levels in Australia are falling in recent years (Bell et al. 2018).
 
2
This dataset is comparable to the Panel Study of Income Dynamics (PSID) and other surveys include in the Cross National Equivalence File (CNEF). For more information about the dataset used in our analysis please see: https://​melbourneinstitu​te.​unimelb.​edu.​au/​hilda.
 
3
Prominent examples include the General Practice Rural Incentives Program (GRIP), which provides incentive payments of $4,500 to $60,000 per year for health professionals providing primary health care services in regional and remote regions of Australia. Payments are structured to incentivize migrants to regions that struggle to attract skilled workers, and provide further incentives to remain by providing higher incentives for continued tenure in the region. Australia has also instituted various policies to attract skilled foreign-born workers to regional Australia, and skilled foreign-born workers have become an important component of the regional workforce (Argent and Tonts 2015).
 
4
For more information about the HILDA dataset, please see Summerfield et al. (2011). And Wooden and Watson (2007).
 
5
The categories are Major city, Inner Regional, Outer Regional, and Remote/Very Remote.
 
6
We use fixed effects models rather than random effects models because we cannot assume that the unobserved individual heterogeneity is not correlated with explanatory variables. For example, unobserved ability is likely correlated with educational attainment.
 
7
In this chapter we only consider the first migration event in the case of multiple migration spells. According to this definition the migration indicator is only equal to 1 in the first post-migration spell, and the individual is dropped from the analysis when they are observed as a multiple migrant.
 
8
The top occupation for migrants from inner regional to remote/very remote Australia is: 25—Health professionals, which includes occupations such as Nurses, Medical Practitioners, Surgeons, and Pharmacists.
 
9
These values are calculated as the share of the contribution of education (1.22% points) and occupations (1.6% points) to the difference in the return to migration from the baseline to full specification in Table 11.4 (11.07%). All subsequent contributions of education and occupation to the return to migration are calculated similarly.
 
10
Note that though the estimates of the relative contributions of education and occupation are negative in the graph for inner regional to remote/very remote, this is because the return to migration increased from the baseline to the full specification, leading to a negative difference in estimates.
 
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Metadaten
Titel
Migration and Human Capital: The Role of Education in Interregional Migration: The Australian Case
verfasst von
Daniel Crown
Jonathan Corcoran
Alessandra Faggian
Copyright-Jahr
2021
Buch
The Economic Geography of Cross-Border Migration

Print ISBN: 978-3-030-48290-9

Electronic ISBN: 978-3-030-48291-6

Copyright-Jahr: 2021

DOI
https://doi.org/10.1007/978-3-030-48291-6_11