Does Access to Foreign Markets Shape Internal Migration? [electronic resource] Evidence from Brazil / Hering, Laura

Hering, Laura.
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World Bank working papers.
Washington, D.C.: The World Bank, 2015.
Policy research working papers.
World Bank e-Library.
Government document
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This paper investigates how internal migration is affected by Brazil's increased integration into the world economy. It analyzes 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, a foreign market access measure is computed 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. 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 observed impact is driven by the strong reaction of low-educated workers to changes in market access. This finding is consistent with the fact that Brazil is exporting mainly goods that are intensive in unskilled labor.
Hering, Laura.
Paillacar, Rodrigo.
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Print version: Hering, Laura Does Access to Foreign Markets Shape Internal Migration?
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