Dual-earner migration. Earnings gains, employment and self-selection

This paper examines how spouses in dual-earner couples weigh each partner's expected wage growth in the decision to migrate. Previous research suggests that husbands' job prospects dominate the migration choice irrespective of their relative earnings potential. Based on British panel data, this paper employs an endogenous switching model and estimates wage differentials of migrating vs. staying for husbands and wives corrected for double selectivity of migration and employment. Dual-earner couples attach a positive weight to each partner's expected wage gains when deciding to migrate. Moreover, migrant wives' employment decreases temporarily, and there are significant selection effects in migration and employment amongst non-migrants. © 2009 Springer-Verlag.