Full Citation
Title: Appendix for Worker Adjustment to Changes in Labor Demand: Evidence from Longitudinal Census Data
Citation Type: Miscellaneous
Publication Year: 2018
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Abstract: Location and sectoral moving costs can generate similar average patters, disguising different sources and effects on subpopulations. Appendix Figure E.1 shows the effects of a shock in Location 1 and Sector A when location 2 only has jobs in Sector B. As a result, to change locations, individuals also have to change sectors. Panel A shows the effects of increasing location moving costs on wages and migration decisions of workers originally in location 1 (when sectoral moving costs are 0), while Panel B shows the effects of increasing sectoral moving costs (when location moving costs are 0). Increasing either cost reduces out-migration and increases the magnitude of the impact on average wages. However, turning to Panels C and D, we see that these similar average effects hide heterogenous effects. These panels, which show how the effects of raising each type of moving costs affects workers originally in location A broken down by their original sector, shows that raising location moving costs hurts both workers originally in Sector A and Sector B. Conversely, increasing sectoral moving costs hurts workers in Sector A, while actually helping those originally in Sector B. Furthermore, costs of changing locations versus sectors or occupations are likely driven by different factors and may have different policy solutions. Consequently, exploiting data that allows me to distinguish these two types of costs is essential. . .
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Authors: Bartik, Alexander, W
Publisher: University of Illinois at Urbana-Champaign
Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure, Other
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