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Business Cycles, Migration and Health

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  • Timothy Halliday

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    (Department of Economics, University of Hawaii at Manoa)

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    Abstract

    This paper uses data from the PSID to investigate how selective migration affects the relationship between business cycles and health. We show that, among the healthy, migration is used to insure against macroeconomic fluctuations. However, among the unhealthy, there is no relationship between migration and business cycles. In other words, illness erases a person’s ability to use migration to hedge against business cycle fluctuations. This suggests that recessions should induce an out-migration of disproportionately healthy people from economically depressed areas. This implies that - ceterus paribus - mortality and morbidity rates should be counter-cyclical.

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_05-13.pdf
    File Function: First version, 2005
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    Bibliographic Info

    Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200513.

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    Length: 18 pages
    Date of creation: 03 Mar 2005
    Date of revision: 05 Aug 2005
    Handle: RePEc:hai:wpaper:200513

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    1. Borjas, George J & Bronars, Stephen G & Trejo, Stephen J, 1992. "Assimilation and the Earnings of Young Internal Migrants," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 170-75, February.
    2. Timothy J. Halliday & Michael Kimmitt, 2007. "Selective Migration and Health," Working Papers 200720, University of Hawaii at Manoa, Department of Economics.
    3. Christopher J. Ruhm, 2000. "Are Recessions Good For Your Health?," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 617-650, May.
    4. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September.
    5. Costas Meghir & Luigi Pistaferri, 2001. "Income variance dynamics and heterogenity," IFS Working Papers W01/07, Institute for Fiscal Studies.
    6. Ruhm, Christopher J., 2003. "Healthy Living in Hard Times," IZA Discussion Papers 711, Institute for the Study of Labor (IZA).
    7. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    8. Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
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