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Title: The Effect Of Expected Income On Individual Migration Decisions

Citation Type: Journal Article

Publication Year: 2011

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Abstract: Abstract The paper develops a tractable econometric model of optimal migration, focusing on expected income as the main economic influence on migration. The model improves on previous work in two respects: it covers optimal sequences of location decisions (rather than a single once-for-all choice), and it allows for many alternative location choices. The model is estimated using panel data from the NLSY on white males with a high school education. Our main conclusion is that interstate migration decisions are influenced to a substantial extent by income prospects. The results suggest that the link between income and migration decisions is driven both by geographic differences in mean wages and by a tendency to move in search of a better locational match when the income realization in the current location is unfavorable.

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Authors: Walker, James R.; Kennan, John

Periodical (Full): Econometrica

Issue: 1

Volume: 79

Pages: 211-251

Data Collections: IPUMS USA

Topics: Migration and Immigration

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