Why is the Roy-Borjas model unable to predict international migrant selection on education? : evidence from urban and rural Mexico / Stefan Leopold, Jens Ruhose, Simon Wiederhold ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association

Abstract

The Roy-Borjas model predicts that international migrants are less educated than nonmigrants because the returns to education are generally higher in developing (migrant-sending) than in developed (migrant-receiving) countries. However, empirical evidence often shows the opposite. Using the case of Mexico-U.S. migration, we show that this inconsistency between predictions and empirical evidence can be resolved when the human capital of migrants is assessed using a two-dimensional measure of occupational skills rather than by educational attainment. Thus, focusing on a single skill dimension when investigating migrant selection can lead to misleading conclusions about the underlying economic incentives and behavioral models of migration.