International migration and local employment: analysis of self-selection and earnings in Tajikistan
Aziz Atamanov & M. van den Berg
#2011-047
This paper addresses the issue of self-selection of individuals in
international labour migration, non-agricultural and agricultural
employment in Tajikistan and its link to earnings from these activities.
Unlike most empirical studies, we could attribute selection bias on
unobservable characteristics to the allocation of individuals to
alternative employment sectors and analyse its impact on earnings abroad
and at home. We have found positive selection in migration against local
non-agricultural activities and positive selection in local
non-agricultural activities against local agricultural activities. This
indicates that the most capable individuals with regards to unobservable
characteristics choose to migrate, while the somewhat less able choose
non-agricultural activities, and individuals with the worst capabilities
stay in poorly-paid agricultural activities. Controlling for
self-selection, labour income returns to education of migrants and
individuals in non-agricultural activities are slightly lower than those
from Ordinary Least Squares (OLS).
Keywords: international migration, self-selection, earnings, Tajikistan
JEL classification: J24, J31, F22, O15