Abstract
"This paper examines the effect of gross nominal earnings, gross real earnings, and net real earnings on net migration in a simultaneous-equation model of net migration and employment growth. Using US SMSA data for 1970-75, the study shows that nominal earnings are not a good proxy for real earnings. In addition, gross real earnings performed better than net real earnings, suggesting a possibility of 'tax illusion' on the part of the migrants. Besides, employment growth had a significant positive effect on net migration, whereas net migration affected employment growth positively but less significantly." (summary in FRE, GER)
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