Self-Selection of Return Migrants in Brazil and Inequality

Abstract

This paper investigates self-selection of returnees migrants in Brazil, from 2001 to 2010. We find evidence of the impact of inequality on selfselection through two opposing channels. First, migrations costs prevent low-skilled individuals from emigrating, which support positive selection. This selection is accentuated in locations with high inequality. Secondly, we find that low-skilled individuals have wage incentives to emigrate from states with relative high inequality, implying a negative impact on selection. All in all, we find more important effects of migration costs, with the predominance of positive selection

Keywords

• Inequality
• Return Migration
• Self-selection
• Brazil