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Net Migration and State Labor Market Dynamics

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  • Joshua Hojvat Gallin

    (Federal Reserve Board)

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    Abstract

    Existing empirical estimates of net migration models are not identified because they lack an explicit measure of expected future conditions. I find that using actual one-period-ahead net migration at the state level to control for expectations reduces the strength of the relationship between current wages and net migration by more than one-third. I use the case of Michigan to show how existing empirical models mischaracterize the response of migration to shocks that are expected to be transitory. I add migration to a labor market model and simulate responses to permanent and transitory demand shocks.

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Labor Economics.

    Volume (Year): 22 (2004)
    Issue (Month): 1 (January)
    Pages: 1-22

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    Handle: RePEc:ucp:jlabec:v:22:y:2004:i:1:p:1-22

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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Partridge, Mark D. & Rickman, Dan S. & Olfert, M. Rose & Tan, Ying, 2012. "When spatial equilibrium fails: is place-based policy second best?," MPRA Paper 40270, University Library of Munich, Germany.
    2. Jordan M. Rappaport, 2000. "How Does Labor Mobility Affect Income Convergence?," Econometric Society World Congress 2000 Contributed Papers 0124, Econometric Society.
    3. Paciorek, Andrew, 2013. "Supply constraints and housing market dynamics," Journal of Urban Economics, Elsevier, vol. 77(C), pages 11-26.
    4. Liao, Wen-Chi, 2010. "Outsourcing and computers: Impact on urban skill level and rent," Regional Science and Urban Economics, Elsevier, vol. 40(2-3), pages 136-154, May.
    5. Leslie Lipschitz & Geneviève Verdier & Céline Rochon, 2008. "A Real Model of Transitional Growth and Competitiveness in China," IMF Working Papers 08/99, International Monetary Fund.
    6. Manuel Adelino & Song Ma & David T. Robinson, 2014. "Firm Age, Investment Opportunities, and Job Creation," NBER Working Papers 19845, National Bureau of Economic Research, Inc.
    7. Lipschitz, Leslie & Rochon, Céline & Verdier, Geneviève, 2011. "A real model of transitional growth and competitiveness in China," Journal of Asian Economics, Elsevier, vol. 22(4), pages 267-283, August.
    8. Matthew J. Notowidigdo, 2011. "The Incidence of Local Labor Demand Shocks," 2011 Meeting Papers 629, Society for Economic Dynamics.
    9. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    10. Julia Jauer & Thomas Liebig & John P. Martin & Patrick Puhani, 2014. "Migration as an Adjustment Mechanism in the Crisis? A Comparison of Europe and the United States," OECD Social, Employment and Migration Working Papers 155, OECD Publishing.
    11. Jordan Rappaport, 1999. "Why are population flows so persistent?," Research Working Paper 99-13, Federal Reserve Bank of Kansas City.
    12. Saks, Raven E., 2008. "Job creation and housing construction: Constraints on metropolitan area employment growth," Journal of Urban Economics, Elsevier, vol. 64(1), pages 178-195, July.
    13. Joern Rattsoe & Hildegunn Ekroll Stokke, 2009. "Regional income convergence, skilled migration and productivity response: Explaining relative stagnation in the periphery," Working Paper Series 9809, Department of Economics, Norwegian University of Science and Technology.
    14. Rickman, Dan S., . "A Brief on When and How Rural Economic Development Should be Done," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association.

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