Abstract
Traditionally, studies of migration have focused on two functions of migration: first, as a means to redistribute society's labor force to its most efficient use and, second, at the level of the individual, as a human capital investment. This study investigates the role of migration in the determination of earnings differentials by race and gender. Microdata from the United Status Census are used to estimate earnings functions by race, gender, and migration status. Strong evidence is provided suggesting that unexplained portions of earnings differentials, reflecting wage discrimination and other unobserved heterogeneity, are substantially reduced for both race and gender through the process of interstate migration.
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I am grateful to Michael J. Greenwood, Janet M. Rives, and an anonymous referee for insightful comments.
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Krieg, R.G. Does migration function to reduce earnings differentials by race and gender?. Ann Reg Sci 24, 211–221 (1990). https://doi.org/10.1007/BF01581850
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DOI: https://doi.org/10.1007/BF01581850