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Title: Understanding Gross Workers Flows Across U.S. States
Citation Type: Working Paper
Publication Year: 2006
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Abstract: This paper documents and provides an explanation for the main stylized facts about net and gross workers ßows across states in the U.S. While it is generally known that gross ßows of population across locations are signiÞcantly larger in the U.S. than within most European countries, there is considerable heterogeneity in gross and net ßows across states within the U.S. itself. The main purpose of the paper is to test whether a simple general equilibrium search model based on Lucas and Prescott (1974)'s island economy can account for the main stylized facts. The key stylized facts are as follows. In the cross-sectional dimension: (1) Gross inßow rates are more dispersed than net inßow rates, which are more dispersed than gross outßow rates. (2) Gross inßow and outßow rates are positively correlated. (3) Gross and net inßow rates are highly positively correlated, while net ßow rates and gross outßow rates are uncorrelated. In the time-series dimension, there is a large degree of persistence in both gross and net ßow rates across Census years for a given state. To address these facts, I develop a general equilibrium model of net and gross workers' ßows across locations. Net ßows are driven by shocks to local labor demand, while gross ßows are driven by idiosyncratic location-speciÞc shocks to workers' productivity. In response to shocks to the growth rate of labor productivity in a location, the model generates artiÞcial data that is generally consistent with the stylized facts listed above. *
Url: https://econpapers.repec.org/paper/cmugsiawp/-236096759.htm
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Authors: Coen-Pirani, Daniele
Series Title: GSIA Working Papers
Publication Number: 2006-E68
Institution: Carnegie Mellon University
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Data Collections: IPUMS USA
Topics: Education, Labor Force and Occupational Structure, Migration and Immigration
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