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Geographic Mobility, Race, and Wage Differentials

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Author Info
Steven Raphael
David A. Riker
Abstract

This paper analyzes the relationship between geographic mobility and earnings. We present an equilibrium search model that yields differences between the reservation wages of mobile and immobile workers. The expected wages of mobile workers exceed those of immobile workers due to partial sorting across high- and low-paying firms. An extension to visibly distinct groups with different proportions immobile yields statistical discrimination against immobile group members. Using combined Displaced Workers Files, we find that mobility positively affects earnings and partially explains racial and ethnic earnings differentials. To test for statistical discrimination, we estimate separate earnings functions for union and non-union workers.

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Paper provided by Department of Economics, UC San Diego in its series University of California at San Diego, Economics Working Paper Series with number 97-05r.

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Date of creation: Jan 1998
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Handle: RePEc:cdl:ucsdec:97-05r

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April. [Downloadable!] (restricted)
  2. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October. [Downloadable!] (restricted)
  3. Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-21, June. [Downloadable!] (restricted)
  4. Kenneth Arrow, 1971. "The Theory of Discrimination," Working Papers 403, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  5. Gregory M. Duncan & Duane E. Leigh, 1980. "Wage determination in the union and non-union sectors: A sample selectivity approach," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 34(1), pages 24-34, October.
  6. Albrecht, James W & Axell, Bo, 1984. "An Equilibrium Model of Search Unemployment," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 824-40, October. [Downloadable!] (restricted)
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  7. William M. Boal & Michael R. Ransom, 1997. "Monopsony in the Labor Market," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 86-112, March. [Downloadable!] (restricted)
  8. Farber, Henry S, 1983. "The Determination of the Union Status of Workers," Econometrica, Econometric Society, vol. 51(5), pages 1417-37, September. [Downloadable!] (restricted)
  9. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 30(2), pages 175-187, January.
  10. Gibbons, Robert & Katz, Lawrence F, 1991. "Layoffs and Lemons," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 351-80, October. [Downloadable!] (restricted)
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  11. Munnell, Alicia H. & Geoffrey M. B. Tootell & Lynn E. Browne & James McEneaney, 1996. "Mortgage Lending in Boston: Interpreting HMDA Data," American Economic Review, American Economic Association, vol. 86(1), pages 25-53, March.
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  12. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June. [Downloadable!] (restricted)
  13. R. Scott Hacker, 2000. "Mobility and Regional Economic Downturns," Journal of Regional Science, Blackwell Publishing, vol. 40(1), pages 45-65. [Downloadable!] (restricted)
  14. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  15. Richard B. Freeman, 1980. "Unionism and the Dispersion of Wages," NBER Working Papers 0248, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Cynthia Bansak & Steven Raphael, 1998. "Immigration Reform and the Earnings of Latino Workers: Do Employer Sanctions Cause Discrimination?," University of California at San Diego, Economics Working Paper Series 98-20, Department of Economics, UC San Diego. [Downloadable!]
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