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Moving from a Poor Economy to a Rich One: A Job Tasks Approach

Author

Listed:
  • Eran Yashiv

    (The Eitan Berglas School of Economics, Tel Aviv University)

Abstract
This paper studies outcomes for workers moving from a poor to a rich economy employing a job tasks based approach. It uses a data case, whereby a worker could decide to work in a richer economy and place himself there by a daily or weekly commute. This set-up faciliates the disentanglement of income differences motives from a plethora of other motives. Thus it eschews the bias inherent in many studies. The paper emphasizes the idea that tasks are tied to locations, and workers choose a location-task-wage ‘pack.’ The task demanded, which is a bundle of skills, constrains human capital returns for movers. Relatively low task returns generate a substantial offset to the productivity gain for migrants, stemming from the rich economy having higher TFP and capital.

Suggested Citation

  • Eran Yashiv, 2021. "Moving from a Poor Economy to a Rich One: A Job Tasks Approach," RF Berlin - CReAM Discussion Paper Series 2119, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:2119
    as

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    File URL: https://www.cream-migration.org/publ_uploads/CDP_19_21.pdf
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    References listed on IDEAS

    as
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    2. Joost Bosker & Marc Gürtler, 2024. "The impact of cultural differences on the success of elite labor migration—Evidence from professional soccer," Annals of Operations Research, Springer, vol. 341(2), pages 781-824, October.

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    More about this item

    Keywords

    movers and stayers; rich and poor economies; migranttasks; location-task-wage bundle; pure income effects; TFP differentials; human capital differences; self-selection;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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