Temporary and Permanent Migrant Selection: Theory and Evidence of Ability–Search Cost Dynamics

In this paper, patterns of selection into temporary and permanent migration are described. The simultaneity of migration, education, and other investment decisions creates a stark trade-off between a comprehensive, more descriptive assessment of self-selection and a narrowly focused identification of a specific causal relationship. The former is opted because the characteristics of migrants are the principal determinant of the effects of migration on both sending and receiving areas. In contrast, identifying the underlying causes of selection would be more relevant for understanding the consequences of, for example, education policy on migration decisions.