The main objective of this paper is to evaluate the migration processes that have been occurring in Chile between 1977-82 and 1987-92, as a market mechanism to re-allocate labor among regions. Using traditional consumer theory, a model is developed for a migrant who is evaluating migration. Secondly, this model is estimated, with cross section data, for both periods using a logit formulation. The results indicate that even though the market signal are moving workers in the expected direction, there still is a strong force in the Chilean regional labor market, which serves to concentrate the workforce around the largest populated region of the country.
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Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.