Migration, Selection and Income Differentials in Brazilian Labor Market.

Abstract

Migration is understood in the economic literature as a decision based on prospects of better working conditions and the search for higher remuneration at the destination, compared to the origin of the workforce. In this sense, this article aims to test the hypothesis of favorable migratory selectivity in Brazil based on the model with sample selection bias correction proposed by Heckman (1979). Based on census information for the years 2000 and 2010, the aim is to analyze the population aged between 15 and 60 years who declared themselves to be employed in the Brazilian labor market. Suppose it is confirmed that migrants are a positively selected population group. In that case, they have unobservable characteristics that affect the decision to migrate and, consequently, labor earnings. The second step is to decompose the characteristics that affect the earnings differentials between migrants and non-migrants, considering those of an observable and non-observable nature. The results show that Brazilian intercity migrants make up a positively selected group. Concerning the breakdown of income differentials, labor income is more remarkable in favor of migrants, and the largest share of income differences between migrants and non-migrants is due to unobservable factors. Therefore, the implications of this study show that the migration of qualified human capital in Brazil, that is, those with the best professional performance in the labor market (positively selected), may end up deepening regional socioeconomic inequalities since migrants always seek opportunities in more economically dynamic regions. This suggests that policies be developed to reduce regional inequalities that aim, above all, to boost the growth of less developed regions so that their human capital has the opportunity to develop internally in their regions, contributing to the growth and development of the original region.