Impact of internal migration on the economic well‐being of local workers and school dropouts among children in Vietnam

Abstract

AbstractThis study examines the impact of migration on local workers and high school dropouts of local students. A conventional approach without addressing the endogeneity issue may lead to biased results. Our endogeneity‐corrected estimates show a positive impact of migration on the monthly wages of local workers. A higher share of migrants increases the probability of local workers with employment contracts, social insurance, and holiday pay. Heterogeneity analysis shows that local workers, no matter their educational level, work experience, or occupation sectors, benefit from the inflow of migrants. Finally, migration inflow lowers the probability of high school dropouts among local students. Our findings resulting from rigorous statistical approaches suggest that internal migration produces positive impacts on the economic well‐being of local residents, refuting the argument about the adverse effects associated with internal migration.