Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107796
Authors: 
Hering, Laura
Paillacar, Rodrigo
Year of Publication: 
2014
Series/Report no.: 
Tinbergen Institute Discussion Paper 14-084/VI
Abstract: 
This paper investigates how internal migration is a affected by Brazil's increased integration into the world economy. We analyze the impact of regional differences in access to foreign demand on sector-specific bilateral migration rates between the Brazilian states for the years 1995 to 2003. Using international trade data, we compute a foreign market access indicator at the sectoral level, which is exogenous to domestic migration. A higher foreign market access is associated with a higher local labor demand and attracts workers via two potential channels: higher wages and new job opportunities. Our results show that both channels play a significant role in internal migration. Further, we find a heterogeneous impact across industries according to their comparative advantage on the world market. However, the impact of market access is robust only for low-educated wor kers. This finding is consistent with the fact that Brazil is exporting mainly goods that are intensive in unskilled labor.
Subjects: 
Regional migration
international trade
market access
Brazil
JEL: 
F16
F66
R12
R23
Document Type: 
Working Paper

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