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Standard models of labor migration suggest that migration is induced by real income differentials across locations and will, ceteris paribus, serve to reduce those differentials. And yet there is evidence that growing spatial inequality may co-exist with increased migration from poorer to richer...
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This paper reconsiders the (self-)selection of international migrants. In an extended Roy-model we analyse the factors which affect the selection bias of migrants. In particular, we find that migrants need not necessarily be (un-)favourably self-selected if the inequality of earnings is higher...
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