Migrant Inertia, Accessibility and Local Unemployment

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Migrant Inertia, Accessibility and Local Unemployment

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Molho, Ian

Abstract

A labor-market model is constructed in which migration may exhibit distance deterrence and cumulative inertia. (Migration probabilities fall with distance and length of residence, respectively.) The combination of these two processes yields higher equilibrium unemployment rates in remote areas. Fewer out-migration opportunities in remote areas generate longer residence durations that become self-perpetuating (via cumulative inertia). Such areas accumulate net in-migrants until the local unemployment rate rises sufficiently to balance inflows and outflows. In equilibrium, local unemployment rates compensate for (endogenous) variations in residence duration. Some evidence is presented for Britain that supports the prediction of higher unemployment in remote areas. Copyright 1995 by The London School of Economics and Political Science.

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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 62 (1995)
Issue (Month): 245 (February)
Pages: 123-32
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Handle: RePEc:bla:econom:v:62:y:1995:i:245:p:123-32

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Mills, Bradford & Hazarika, Gautam, 1999. "Non-Metropolitan To Metropolitan Area Migration Of Young Adults," 1999 Annual meeting, August 8-11, Nashville, TN 21653, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association. [Downloadable!]
Other versions:
- Elhorst, J. Paul, 2001. "The mystery of regional unemployment differentials : a survey of theoretical and empirical explanations," Research Report 00C06, University of Groningen, Research Institute SOM (Systems, Organisations and Management). [Downloadable!]
Robert E. B. Lucas, 2000. "The Effects of Proximity and Transportation on Developing Country Population Migrations," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-111, Boston University - Department of Economics. [Downloadable!]

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