A new approach to estimate migrants’ self-selection. Davide Fiaschi (University of Pisa), Angela Parenti (University of Pisa) and Cristina Tealdi (Heriot-Watt University)

Abstract
This paper presents a new methodology to estimate the self-selection of migrants using an intertemporal random utility maximisation model. This methodology, which accounts for multiple destination choices grouped into nests, overcomes some of the issues typically discussed in the literature, such as the lack of available data on migrants and the presence of unobservable variables. We apply this methodology to inter-regional migration in Italy in the period 1992-2016, and we find strong evidence of self-selection among Italian regions. Specifically, we quantify the return to education to be higher in the best Northern regions compared to the worst Southern regions by approximately 2 percentage points, which leads to a higher inflow of skilled workers in Northern regions. However, at the same time, some Northern regions, such as Lombardy and Piedmont, also show a relatively high outflow of skilled workers towards other Northern regions such as Emilia Romagna and Veneto.

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https://univr.zoom.us/j/89966192693