Munich Personal RePEc Archive

The Effects of Relocation on Wages: A Decomposition Analysis

Asma, Hyder (2008): The Effects of Relocation on Wages: A Decomposition Analysis. Published in: International Journal of Rural Management , Vol. 4, No. 1-2 (1 December 2008): pp. 169-180.


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This article estimates the wage differentials between the natives and the relocated workers. Nationwide Pakistan Labor Force Survey 2005–06 has been used with a total sample of 10,401 working individuals. Two wage equations are estimated for those living in that area since birth or those who relocated during the last 10 years or so. Oaxaca-Binder methodology has been used for decomposition analysis. This decomposition analysis further helps to investigate the ‘treatment’ and ‘endowment effect’. The overall decomposition results are in favour of native workers.

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