Why do People Stay? The Insider Advantages Approach: Empirical Evidence from Swedish Labour Markets
AbstractMigration research has been quite successful in explaining changes in migration flows. Less satisfactory are its answers as to why the overwhelming majority of people remain immobile, despite persistent regional wealth differences and economic integration proceeding. We suggest complementing traditional theories with an insider advantages approach towards immobility. Most people do not move because by staying immobile they have accumulated work- and leisure-oriented insider advantages that are location-specific and would be lost in case of emigration. Therefore, the longer people have stayed and the more insider advantages they have accumulated, the less likely they are to move. Using a new micro dataset covering all people resident in Sweden in 1994 and their mobility experience since 1985, we find a strong positive duration dependence of the probability to stay even after controlling for a large set of alternative factors. Traditional microeconomic characteristics prove helpful in explaining immobility, while regional macroeconomic differences have very little impact on individual mobility decisions. A large number of moves between Swedish labour markets seem related to specific life-course events, of which getting unemployed is only one. Factors that are not dependent on one’s own work but ought to increase location-specific insider-advantages (like having a working partner, having children or owning a house), increase the probability of staying even further.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1952.
Date of creation: Aug 1998
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.