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Is Learning by Migrating in Megalopolis Really Important?

Tomohiro Machikita

February, 2005

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Abstract

This paper examines learning by migrating effects on the productivity of migrants who move to the ``megalopolis" from rural areas utilizing the Thailand Labor Force Survey Data. The main contribution of this paper is to develop a simple framework to empirically test for self-selection on the migration decision and learning by migrating. The role of the characteristics of the urban labour market is also examined. In conclusion, we find self-selection effects test (1) positive among new migrants from rural area (i.e. ``new entrants" to the urban labour market); and (2) negative among new migrants who move to rural areas (i.e. ``new exits" from the urban labour market). These results suggest a natural selection (survival of the fittest) mechanism exists in the urban labour market.

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