SELF-SELECTION AND EARNINGS DURING VOLATILE TRANSITION

Using Bulgarian Integrated Household Surveys for 1995, 1997 and 2001 this paper explores determinants of labor force status – not working, public sector employment, private sector employment and self-employment – and earnings for each of the three employment sectors. We find that while skilled labor’s pattern of reallocation into the public sector remains roughly the same over time, the inflow of highly educated laborers into the private sector and selfemployment increases. These changes coincide with the erosion of the returns to observed skills in the private sector and self-employment, while the public sector continues to reward all types of education at higher than the elementary level.http://deepblue.lib.umich.edu/bitstream/2027.42/40085/3/wp699.pd

Immigration Policy and Self-Selecting Migrants

We explore the implications of migrants' self-selection for the determination of immigration policy in a simple model where incentives and resources to migrate vary with skills. We show how self-selection determines the response of potential migrants to immigration policy changes, which is crucial for predicting the effects of such policy in the receiving country. For example, restricting immigration when it is low skilled may worsen self-selection and thus the receiving country skill distribution. These selection effects may lead low skilled natives to support a more restrictive policy even though current immigrants are not harmful for them, and the receiving country government to impose significant restrictions even in a purely utilitarian world.Immigrant self-selection; immigration policy preferences; political economy of immigration.

Self-selection and Earnings of Migrants: Evidence from Rural China

Using data from a rural household survey in China, this paper explores the link between employment choice (nonworking, local farm work, local nonfarm work and migratory work) and migrant earnings. We find significant self-selection in migration. Youths, males, better-educated individuals and those in good health are more likely to migrate. In terms of unobserved characteristics, we find positive selection in migration as related to the alternatives of not working and local farm work, and insignificant self-selection as related to local nonfarm work. Controlling for self-selection, the wage returns to gender (male), education and health are lower than those obtained from simple ordinary least squares (OLS), and the returns to experience are higher. More importantly, we find different self-selection between individuals who have moved as pioneers and migrants from households in which other members have already migrated.Migration, Self-selection, Pioneer migrants

Self-selection patterns in Mexico-U.S. migration: The role of migration networks

This paper examines the role of migration networks in determining self-selection patterns of Mexico-U.S. migration. We first present a simple theoretical framework showing how such networks impact on migration incentives at different education levels and, consequently, how they are likely to affect the expected skill composition of migration. Using survey data from Mexico, we then show that the probability of migration is increasing with education in communities with low migrant networks, but decreasing with education in communities with high migrant networks. This is consistent with positive self-selection of migrants being driven by high migration costs, as advocated by Chiquiar and Hanson (2005), and with negative self-selection of migrants being driven by lower returns to education in the U.S. than in Mexico, as advocated by Borjas (1987).Migration, migration networks, educational attainments, self-selection, Mexico

Fenomena, Feminisme dan Political Self Selection Bagi Perempuan

Democracy needs all participation people in the country, women and men. The political right for women, as we know was feminism hard and long time struggled, therefore now the women have the high quality live in politic, the economic and social. All the country in the world have ratificated the PBB of law for political freedom for women as the same as men. Especially in Indonesia now there's no formal barriers for women leadership, if they select to participate in politics but it was the phenomenon for the women among self selection in politics, the freedom to be participating and children, husband, housing, that still stronger; from which one barrier “self selection” or “culture and religion” responsibility where significantly. Minangkabau women, forward analysis we can aim self selection or children, husband and family responsibility. It is indisputable that the women's awareness and struggle in the politics are debt to the feminists' endless efforts. The feminists have fostered the women to empower themselves by which they reach equal position compared with their counterparts, in nearly all aspects of the social life

Self-selection among undocumented immigrants from Mexico

This paper examines the effect of changes in migration determinants on the skill level of undocumented immigrants from Mexico. The authors focus on the effect of changes in economic conditions, migrant networks, and border enforcement on the educational attainment of Mexican-born men who cross the border illegally. Although previous research indicates that illegal aliens from Mexico tend to be unskilled relative to U.S. natives and that economic conditions, networks, and border enforcement affect the size of illegal immigrant flows across the border, the interaction of these variables has not been investigated. Results from hazard models using data from the Mexican Migration Project indicate that improvements in U.S. and Mexican economic conditions are associated with a decline in the average educational levels of undocumented immigrants. Stricter border enforcement is associated with higher average skill levels. Access to a network of previous immigrants appears to lower the cost of migrating but has no differential effect by skill level.Immigrants ; Emigration and immigration ; Labor supply

Technical Efficiency among Organic and Conventional Farms in Sweden 2000-2002: A Counterfactual and Self-Selection Analysis

Technical efficiency and its determinants among organic and conventional farms in Sweden are analyzed for time-period 2000-2002. In addition, we address the issues that arise when comparing performance measures among the two groups of producers (conventional and organic) due differences in their technologies and the potential presence of self-selection in the farmer's choice of using conventional or organic production methods. If the choice of production method is based on, or at least in part based on, the farms expected productivity in organic and conventional farming respectively there is self-selection present that must be considered. We apply an endogenous switching regression model suggested by Lee (1978) to compare efficiency measures between the two groups that also allows for testing for the presence of self-selection. The results suggest that organic producers have a lower average technical efficiency which is expected because they use a more restricted technology. Moreover, the results suggest that the organic farmers are on average more efficient in organic production than the average conventional would have been in organic production.technical efficiency, self-selection, organic farming, Farm Management, O390, Q120,

Self-Selection and Advice in Venture Capital Finance

In financing start-up firms, venture capitalists carefully select among alternative projects, design incentive compatible financial contracts and support portfolio companies with value enhancing managerial advice. This paper considers how venture capitalists can induce self-selection among entrepreneurial firms with different qualities and growth potential by designing appropriate contracts and offering managerial support. We study the efficiency of the competitive market equilibrium with respect to the level and quality of entrepreneurship and the level of effort by entrepreneurs and venture capitalists. We also provide comparative static results with respect to basic preference and technology parameters.Venture capital, entrepreneurship, self-selection, moral hazard

Ethnic enclaves and immigrant labour market outcomes: quasi-experimental evidence

This study investigates empirically how residence in ethnic enclaves affects labour market outcomes of refugees. Self-selection into ethnic enclaves in terms of unobservable characteristics is taken into account by exploitation of a Danish spatial dispersal policy which randomly disperses new refugees across locations conditional on six individual-specific characteristics. The results show that refugees with unfavourable unobserved characteristics are found to self-select into ethnic enclaves. Furthermore, taking account of negative self-selection, a relative standard deviation increase in ethnic group size on average increases the employment probability of refugees by 4 percentage points and earnings by 21 percent. I argue that in case of heterogenous treatment effects, the estimated effects are local average treatment effects

Effort Self-Selection and the Efficiency of Tournaments

When exogenously imposed, rank-order tournaments have incentive properties but their overall efficiency is reduced by a high variance in performance (Bull, Schotter, and Weigelt 1987). However, since the efficiency of performance-related pay is attributable both to its incentive effect and to its selection effect among employees (Lazear, 2000), it is important to investigate the ex ante sorting effect of tournaments. This paper reports results from an experiment analyzing whether allowing subjects to self-select into different payment schemes helps in reducing the variability of performance in tournaments. We show that when the subjects choose to enter a tournament, the average effort is higher and the between-subject variance is substantially lower than when the same payment scheme is imposed. Mainly based on the degree of risk aversion, sorting is efficiency-enhancing since it increases the homogeneity of the contestants. We suggest that the flexibility of the labor market is an important condition for a higher efficiency of relative performance pay.experiment ; Incentives ; performance pay ; selection ; selection ; tournament