Publication:
The Place Premium : Wage Differences for Identical Workers across the US Border

dc.contributor.author Clemens, Michael A.
dc.contributor.author Montenegro, Claudio E.
dc.contributor.author Pritchett, Lant
dc.date.accessioned 2012-05-31T22:26:43Z
dc.date.available 2012-05-31T22:26:43Z
dc.date.issued 2008-07
dc.description.abstract This paper compares the wages of workers inside the United States to the wages of observably identical workers outside the United States-controlling for country of birth, country of education, years of education, work experience, sex, and rural-urban residence. This is made possible by new and uniquely rich microdata on the wages of over two million individual formal-sector wage-earners in 43 countries. The paper then uses five independent methods to correct these estimates for unobserved differences and introduces a selection model to estimate how migrants' wage gains depend on their position in the distribution of unobserved wage determinants. Following all adjustments for selectivity and compensating differentials, the authors estimate that the wages of a Bolivian worker of equal intrinsic productivity, willing to move, would be higher by a factor of 2.7 solely by working in the United States. While this is the median, this ratio is as high as 8.4 (for Nigeria). The paper documents that (1) for many countries, the wage gaps caused by barriers to movement across international borders are among the largest known forms of wage discrimination; (2) these gaps represent one of the largest remaining price distortions in any global market; and (3) these gaps imply that simply allowing labor mobility can reduce a given household's poverty to a much greater degree than most known in situ antipoverty interventions. en
dc.identifier http://documents.worldbank.org/curated/en/2008/07/9683939/place-premium-wage-differences-identical-workers-across-border
dc.identifier.uri http://hdl.handle.net/10986/6828
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper No. 4671
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ACCOUNTING
dc.subject ADULT MALE
dc.subject AGE CATEGORIES
dc.subject AGE GROUPS
dc.subject ANNUAL WAGE
dc.subject AVERAGE EXCHANGE RATE
dc.subject AVERAGE WAGE
dc.subject CALCULATION
dc.subject CALCULATIONS
dc.subject CARPENTERS
dc.subject CITIZEN
dc.subject CITIZENS
dc.subject CONSEQUENCES OF MIGRATION
dc.subject CONSUMER
dc.subject CONSUMPTION SMOOTHING
dc.subject CONTRIBUTION
dc.subject CONTRIBUTIONS
dc.subject COST OF TRAVEL
dc.subject COUNTRIES OF ORIGIN
dc.subject COUNTRY OF DESTINATION
dc.subject COUNTRY OF ORIGIN
dc.subject DEVELOPING COUNTRIES
dc.subject DEVELOPMENT ECONOMICS
dc.subject DIRECT COST
dc.subject DISCRIMINATION
dc.subject DISEQUILIBRIUM
dc.subject DRIVERS
dc.subject EARNING
dc.subject EARNINGS
dc.subject EARNINGS MEASURES
dc.subject ECONOMIC GROWTH
dc.subject ECONOMIC THEORY
dc.subject EMPLOYMENT
dc.subject EXCHANGE RATES
dc.subject EXPECTED WAGE
dc.subject FACTOR MARKETS
dc.subject FAMILY MEMBERS
dc.subject FEMALE WORKERS
dc.subject FINANCIAL INSTRUMENTS
dc.subject FORMAL SECTOR WAGE
dc.subject FORMS OF DISCRIMINATION
dc.subject FUNCTIONAL FORMS
dc.subject GDP
dc.subject GDP PER CAPITA
dc.subject GENDER DISCRIMINATION
dc.subject GLOBAL DEVELOPMENT
dc.subject GROSS WAGES
dc.subject HOUSEHOLD CONSUMPTION
dc.subject HUMAN CAPITAL
dc.subject IMMIGRANT
dc.subject IMMIGRANTS
dc.subject IMMIGRATION
dc.subject INCOME
dc.subject INCOME COUNTRIES
dc.subject INCOME INEQUALITY
dc.subject INCOME TAXES
dc.subject INCOMES
dc.subject INFORMAL SECTOR
dc.subject INTERNATIONAL BORDERS
dc.subject INTERNATIONAL PRICE
dc.subject JOBS
dc.subject LABOR COST
dc.subject LABOR COSTS
dc.subject LABOR INCOME
dc.subject LABOR MARKET
dc.subject LABOR MARKET DISCRIMINATION
dc.subject LABOR MARKETS
dc.subject LABOR MIGRATION
dc.subject LABOR MOBILITY
dc.subject LABORERS
dc.subject LARGE FIRMS
dc.subject LEVELS OF EDUCATION
dc.subject LIFETIME
dc.subject LOCAL CURRENCY
dc.subject LOTTERY
dc.subject LOW-INCOME
dc.subject LOW-INCOME COUNTRY
dc.subject LOW-INCOME FAMILIES
dc.subject MAINTENANCE COSTS
dc.subject MARGINAL PRODUCT
dc.subject MARGINAL PRODUCTS
dc.subject MARITAL STATUS
dc.subject MATH
dc.subject MEDICAL CARE
dc.subject MIGRANTS
dc.subject MIGRATION FLOWS
dc.subject MIGRATION POLICY
dc.subject MOVEMENTS OF PEOPLE
dc.subject NATIONAL POPULATION
dc.subject NUMBER OF WORKERS
dc.subject OCCUPATION
dc.subject OCCUPATIONS
dc.subject OFFICIAL LANGUAGE
dc.subject PERSONAL COMMUNICATION
dc.subject POLICY RESEARCH
dc.subject POLICY RESEARCH WORKING PAPER
dc.subject POOR HOUSEHOLDS
dc.subject POOR PEOPLE
dc.subject POVERTY REDUCTION
dc.subject PRECEDING SECTION
dc.subject PREVIOUS SECTION
dc.subject PRODUCTIVITIES
dc.subject PRODUCTIVITY
dc.subject PROGRESS
dc.subject PUBLIC GOOD
dc.subject PURCHASING POWER
dc.subject PURCHASING POWER PARITY
dc.subject RACIAL DISCRIMINATION
dc.subject REAL COST
dc.subject REAL WAGE
dc.subject REAL WAGES
dc.subject REFUGEE
dc.subject REFUGEES
dc.subject REMITTANCES
dc.subject REMUNERATION
dc.subject RESEARCH ASSISTANCE
dc.subject RESPECT
dc.subject RETURN MIGRATION
dc.subject RURAL RESIDENCE
dc.subject SALARIES
dc.subject SAVERS
dc.subject SAVINGS
dc.subject SAVINGS RATES
dc.subject SEX
dc.subject SOCIAL SECURITY
dc.subject SOURCES OF INCOME
dc.subject STATISTICAL ANALYSIS
dc.subject STOCKS
dc.subject TEMPORARY MIGRANTS
dc.subject TEMPORARY MIGRATION
dc.subject TEMPORARY WORKERS
dc.subject TOTAL COMPENSATION
dc.subject TOTAL WAGE
dc.subject TRANSPORTATION
dc.subject UNDERESTIMATES
dc.subject UNEMPLOYED
dc.subject UNPAID FAMILY WORKERS
dc.subject URBAN AREAS
dc.subject UTILITY FUNCTION
dc.subject WAGE
dc.subject WAGE DATA
dc.subject WAGE DIFFERENTIALS
dc.subject WAGE DISCRIMINATION
dc.subject WAGE DISTRIBUTION
dc.subject WAGE EFFECT
dc.subject WAGE GAIN
dc.subject WAGE GAINS
dc.subject WAGE GAP
dc.subject WAGE GAPS
dc.subject WAGE RATE
dc.subject WAGE RATES
dc.subject WAGES
dc.subject WOMAN
dc.subject WORK EXPERIENCE
dc.subject WORKER
dc.subject WORKFORCE
dc.subject WORTH
dc.title The Place Premium : Wage Differences for Identical Workers across the US Border en
dspace.entity.type Publication
okr.crosscuttingsolutionarea Jobs
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2008/07/9683939/place-premium-wage-differences-identical-workers-across-border
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Social Protection and Labor
okr.globalpractice Health, Nutrition, and Population
okr.identifier.doi 10.1596/1813-9450-4671
okr.identifier.externaldocumentum 000158349_20080717164643
okr.identifier.internaldocumentum 9683939
okr.identifier.report WPS4671
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/07/17/000158349_20080717164643/Rendered/PDF/WPS4671.pdf en
okr.region.administrative Latin America & Caribbean
okr.region.administrative Africa
okr.region.country Bolivia
okr.region.country United States
okr.region.country Nigeria
okr.topic Economic Theory and Research
okr.topic Macroeconomics and Economic Growth :: Income
okr.topic Health, Nutrition and Population :: Population Policies
okr.topic Social Protections and Labor :: Labor Markets
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
English PDF
Size:
373.03 KB
Format:
Adobe Portable Document Format
Description:
No Thumbnail Available
Name:
English Text
Size:
231.75 KB
Format:
Plain Text
Description:
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description: