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Mover Stayer Winner Loser - A study of income effects from rural migration

Author

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  • Bjerke, Lina

    (Jönköping International Business School)

  • Mellander, Charlotta

    (Jönköping International Business School, Jönköping University & Centre of Excellence for Science and Innovation Studies (CESIS))

Abstract

The accepted rural-urban migration theory suggests that economic gains are made by moving from a rural to an urban area. Its premise is: “If you stay, you lose.” However, are losses still the rule? And, if so, how big is the economic loss once other factors are controlled for? In this paper, we specifically focus on the income effects of migration decisions among young individuals from rural areas, using microdata for Sweden. We find that, contrary to accepted theory, staying in a rural region most often is insignificant in relation to an individual’s income level. When taking housing values into account, it can even be financially beneficial for some to stay in a rural area. Only for highly educated individuals is it consistently financially beneficial to move to an urban area, also after controlling for housing costs.

Suggested Citation

  • Bjerke, Lina & Mellander, Charlotta, 2019. "Mover Stayer Winner Loser - A study of income effects from rural migration," Working Paper Series in Economics and Institutions of Innovation 476, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0476
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    2. Virág Ilyés & István Boza & László Lőrincz & Rikard H Eriksson, 2023. "How to enter high-opportunity places? The role of social contacts for residential mobility," Journal of Economic Geography, Oxford University Press, vol. 23(2), pages 371-395.

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    More about this item

    Keywords

    rural-urban youth migration; income; mover; stayer;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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