Propensity Score Matching, a Distance-Based Measure of Migration, and the Wage Growth of Young Men
نویسندگان
چکیده
Our analysis of migration differs from previous research in three important aspects. First, we exploit the confidential geocoding in the NLSY79 to obtain a distance-based measure. Second, we let the effect of migration on wage growth differ by schooling level. Third, we use propensity score matching to address selection issues. An economic model helps us determine the variables included in the propensity score. Our data set provides a rich array of variables on which to match. We find a significant effect of migration on the wage growth of college graduates of 10 percent, and a marginally significant effect for high school dropouts of –12 percent. If we use either a measure of migration based on moving across county lines or state lines, the significant effects of migration for college graduates and dropouts disappear. JEL Classification Code: J6, J3, C4.
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