Full Citation

Title: The Effect of Business Cycle Fluctuations on Migration Decisions

Citation Type: Miscellaneous

Publication Year: 2014

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Abstract: In spite of the differential impact of the Great Recession on unemployment across the US, migration rates remain largely unresponsive to local labor market shocks. To isolate which mechanisms prevented migration as insurance against shocks, I estimate a dynamic, non-stationary model of migration and labor supply using a national longitudinal survey from 2004-2013. I focus on the role of employment frictions on migration decisions in addition to other explanations in the literature. My results show that large moving costs are the main impediment to migratory insurance. Model simulations show that spatial unemployment insurance in the form of a moving subsidy can help workers move to more favorable markets. Take-up rates are highest for young, unemployed workers who were not born in the weak location.

Url: http://econ.duke.edu/uploads/media_items/paper-tyler-oct2014.original.pdf

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Authors: Ransom, Tyler

Publisher: Duke University

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Migration and Immigration, Other

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