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

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dc.contributor.authorClemens, Michael A.
dc.contributor.authorMontenegro, Claudio E.
dc.contributor.authorPritchett, Lant
dc.date.accessioned2012-05-31T22:26:43Z
dc.date.available2012-05-31T22:26:43Z
dc.date.issued2008-07
dc.description.abstractThis 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.identifierhttp://documents.worldbank.org/curated/en/2008/07/9683939/place-premium-wage-differences-identical-workers-across-border
dc.identifier.doi10.1596/1813-9450-4671
dc.identifier.urihttps://hdl.handle.net/10986/6828
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper No. 4671
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADULT MALE
dc.subjectAGE CATEGORIES
dc.subjectAGE GROUPS
dc.subjectANNUAL WAGE
dc.subjectAVERAGE EXCHANGE RATE
dc.subjectAVERAGE WAGE
dc.subjectCALCULATION
dc.subjectCALCULATIONS
dc.subjectCARPENTERS
dc.subjectCITIZEN
dc.subjectCITIZENS
dc.subjectCONSEQUENCES OF MIGRATION
dc.subjectCONSUMER
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCONTRIBUTION
dc.subjectCONTRIBUTIONS
dc.subjectCOST OF TRAVEL
dc.subjectCOUNTRIES OF ORIGIN
dc.subjectCOUNTRY OF DESTINATION
dc.subjectCOUNTRY OF ORIGIN
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIRECT COST
dc.subjectDISCRIMINATION
dc.subjectDISEQUILIBRIUM
dc.subjectDRIVERS
dc.subjectEARNING
dc.subjectEARNINGS
dc.subjectEARNINGS MEASURES
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC THEORY
dc.subjectEMPLOYMENT
dc.subjectEXCHANGE RATES
dc.subjectEXPECTED WAGE
dc.subjectFACTOR MARKETS
dc.subjectFAMILY MEMBERS
dc.subjectFEMALE WORKERS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFORMAL SECTOR WAGE
dc.subjectFORMS OF DISCRIMINATION
dc.subjectFUNCTIONAL FORMS
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGENDER DISCRIMINATION
dc.subjectGLOBAL DEVELOPMENT
dc.subjectGROSS WAGES
dc.subjectHOUSEHOLD CONSUMPTION
dc.subjectHUMAN CAPITAL
dc.subjectIMMIGRANT
dc.subjectIMMIGRANTS
dc.subjectIMMIGRATION
dc.subjectINCOME
dc.subjectINCOME COUNTRIES
dc.subjectINCOME INEQUALITY
dc.subjectINCOME TAXES
dc.subjectINCOMES
dc.subjectINFORMAL SECTOR
dc.subjectINTERNATIONAL BORDERS
dc.subjectINTERNATIONAL PRICE
dc.subjectJOBS
dc.subjectLABOR COST
dc.subjectLABOR COSTS
dc.subjectLABOR INCOME
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET DISCRIMINATION
dc.subjectLABOR MARKETS
dc.subjectLABOR MIGRATION
dc.subjectLABOR MOBILITY
dc.subjectLABORERS
dc.subjectLARGE FIRMS
dc.subjectLEVELS OF EDUCATION
dc.subjectLIFETIME
dc.subjectLOCAL CURRENCY
dc.subjectLOTTERY
dc.subjectLOW-INCOME
dc.subjectLOW-INCOME COUNTRY
dc.subjectLOW-INCOME FAMILIES
dc.subjectMAINTENANCE COSTS
dc.subjectMARGINAL PRODUCT
dc.subjectMARGINAL PRODUCTS
dc.subjectMARITAL STATUS
dc.subjectMATH
dc.subjectMEDICAL CARE
dc.subjectMIGRANTS
dc.subjectMIGRATION FLOWS
dc.subjectMIGRATION POLICY
dc.subjectMOVEMENTS OF PEOPLE
dc.subjectNATIONAL POPULATION
dc.subjectNUMBER OF WORKERS
dc.subjectOCCUPATION
dc.subjectOCCUPATIONS
dc.subjectOFFICIAL LANGUAGE
dc.subjectPERSONAL COMMUNICATION
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RESEARCH WORKING PAPER
dc.subjectPOOR HOUSEHOLDS
dc.subjectPOOR PEOPLE
dc.subjectPOVERTY REDUCTION
dc.subjectPRECEDING SECTION
dc.subjectPREVIOUS SECTION
dc.subjectPRODUCTIVITIES
dc.subjectPRODUCTIVITY
dc.subjectPROGRESS
dc.subjectPUBLIC GOOD
dc.subjectPURCHASING POWER
dc.subjectPURCHASING POWER PARITY
dc.subjectRACIAL DISCRIMINATION
dc.subjectREAL COST
dc.subjectREAL WAGE
dc.subjectREAL WAGES
dc.subjectREFUGEE
dc.subjectREFUGEES
dc.subjectREMITTANCES
dc.subjectREMUNERATION
dc.subjectRESEARCH ASSISTANCE
dc.subjectRESPECT
dc.subjectRETURN MIGRATION
dc.subjectRURAL RESIDENCE
dc.subjectSALARIES
dc.subjectSAVERS
dc.subjectSAVINGS
dc.subjectSAVINGS RATES
dc.subjectSEX
dc.subjectSOCIAL SECURITY
dc.subjectSOURCES OF INCOME
dc.subjectSTATISTICAL ANALYSIS
dc.subjectSTOCKS
dc.subjectTEMPORARY MIGRANTS
dc.subjectTEMPORARY MIGRATION
dc.subjectTEMPORARY WORKERS
dc.subjectTOTAL COMPENSATION
dc.subjectTOTAL WAGE
dc.subjectTRANSPORTATION
dc.subjectUNDERESTIMATES
dc.subjectUNEMPLOYED
dc.subjectUNPAID FAMILY WORKERS
dc.subjectURBAN AREAS
dc.subjectUTILITY FUNCTION
dc.subjectWAGE
dc.subjectWAGE DATA
dc.subjectWAGE DIFFERENTIALS
dc.subjectWAGE DISCRIMINATION
dc.subjectWAGE DISTRIBUTION
dc.subjectWAGE EFFECT
dc.subjectWAGE GAIN
dc.subjectWAGE GAINS
dc.subjectWAGE GAP
dc.subjectWAGE GAPS
dc.subjectWAGE RATE
dc.subjectWAGE RATES
dc.subjectWAGES
dc.subjectWOMAN
dc.subjectWORK EXPERIENCE
dc.subjectWORKER
dc.subjectWORKFORCE
dc.subjectWORTH
dc.titleThe Place Premium : Wage Differences for Identical Workers across the US Borderen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleThe Place Premium: Wage Differences For Identical Workers Across The US Border
okr.date.doiregistration2025-04-10T09:18:57.897245Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2008/07/9683939/place-premium-wage-differences-identical-workers-across-border
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeHealth, Nutrition, and Population
okr.guid528191468333932945
okr.identifier.doi10.1596/1813-9450-4671
okr.identifier.externaldocumentum000158349_20080717164643
okr.identifier.internaldocumentum9683939
okr.identifier.reportWPS4671
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/07/17/000158349_20080717164643/Rendered/PDF/WPS4671.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.administrativeAfrica
okr.region.countryBolivia
okr.region.countryUnited States
okr.region.countryNigeria
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Income
okr.topicHealth, Nutrition and Population::Population Policies
okr.topicSocial Protections and Labor::Labor Markets
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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