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What Caused the Decline in Interstate Migration in the United States?

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Abstract

Geographic mobility is thought to be important both for economic mobility and for the efficiency of a labor market in allocating the right people to the right jobs. Accordingly, the willingness of the U.S. workforce to move is a factor behind the greater dynamism of the U.S. labor market compared to Europe. While Europeans tend to be more reluctant to move to distant places within their respective countries, the idea of moving across state borders for a job has been woven into the fabric of the American Dream. However, the image of the United States as a mobile nation has changed substantially over recent decades. This post investigates the role that demographic shifts—in particular, the nation’s aging population—have played in the recent decline in interstate migration.

Suggested Citation

  • Fatih Karahan & Darius Li, 2016. "What Caused the Decline in Interstate Migration in the United States?," Liberty Street Economics 20161017, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:87158
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    Keywords

    labor markets; dynamism; migration; demographics;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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