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A Model of Multiple Equilibria in Geographic Labor Mobility

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  • Luis Ubeda
  • Antonio Spilimbergo

Abstract

We develop a model of double matching in the labor market and the social environment in order to explain different migration patterns in response to local economic shocks. This approach explains the different behaviors of workers in different groups, regions, or countries in an endogenous way by showing the existence of multiple equilibria, rather than in an exogenous manner by introducing ex-ante regulations or unemployment benefits. This model can also explain why individuals from some communities form ‘sister’ communities in some cases and not in others.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/31.

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Length: 21
Date of creation: 01 Feb 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/31

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Related research

Keywords: Migration; unemployed; unemployment; employment; employment status; migrant; unemployed worker; unemployment benefits; unemployed individual; high unemployment; job search; urban unemployment; unemployment rate; regional unemployment; unemployment rates; changing employment status;

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References

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  1. George J. Borjas, 2001. "Does Immigration Grease the Wheels of the Labor Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(1), pages 69-134.
  2. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 86(5), pages 749-73, October.
  3. John Bound & Harry J. Holzer, 1996. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," NBER Working Papers 5685, National Bureau of Economic Research, Inc.
  4. Funkhouser, Edward, 1997. "Labor market adjustment to political conflict Changes in the labor market in El Salvador during the 1980s," Journal of Development Economics, Elsevier, Elsevier, vol. 52(1), pages 31-64, February.
  5. Daveri, Francesco & Faini, Riccardo, 1999. "Where Do Migrants Go?," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 595-622, October.
  6. Graves, Philip E. & Linneman, Peter D., 1979. "Household migration: Theoretical and empirical results," Journal of Urban Economics, Elsevier, vol. 6(3), pages 383-404, July.
  7. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1085, C.E.P.R. Discussion Papers.
  8. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, American Economic Association, vol. 60(1), pages 126-42, March.
  9. Levy, Mildred B & Wadycki, Walter J, 1973. "The Influence of Family and Friends on Geographic Labor Mobility: An International Comparison," The Review of Economics and Statistics, MIT Press, vol. 55(2), pages 198-203, May.
  10. Bowles, Samuel, 1970. "Migration as Investment: Empirical Tests of the Human Investment Approach to Geographical Mobility," The Review of Economics and Statistics, MIT Press, vol. 52(4), pages 356-62, November.
  11. Oswald Andrew J., 1996. "A Conjecture on the Explanation for High Unemployment in the Industrialized Nations : Part I," The Warwick Economics Research Paper Series (TWERPS), University of Warwick, Department of Economics 475, University of Warwick, Department of Economics.
  12. Banerjee, Biswajit, 1991. "The determinants of migrating with a pre-arranged job and of the initial duration of urban unemployment : An analysis based on Indian data on rural-to-urban migrants," Journal of Development Economics, Elsevier, Elsevier, vol. 36(2), pages 337-351, October.
  13. Spilimbergo, Antonio, 1999. "Labor Market Integration, Unemployment, and Transfers," Review of International Economics, Wiley Blackwell, Wiley Blackwell, vol. 7(4), pages 641-50, November.
  14. Greenwood, Michael J, 1969. "An Analysis of the Determinants of Geographic Labor Mobility in the United States," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 189-94, May.
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Citations

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Cited by:
  1. Antonio Spilimbergo & Luis Ubeda, 2002. "Family Attachment and the Decision to Move by Race," IMF Working Papers 02/83, International Monetary Fund.
  2. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: Some Empirics and a Conjecture on the Nature of European Unemployment," IZA Discussion Papers 3669, Institute for the Study of Labor (IZA).
  3. Belot, Michèle & Ermisch, John, 2006. "Friendship ties and geographical mobility: evidence from the BHPS," ISER Working Paper Series 2006-33, Institute for Social and Economic Research.
  4. Alesina, Alberto & Algan, Yann & Cahuc, Pierre & Giuliano, Paola, 2010. "Family Values and the Regulation of Labor," IZA Discussion Papers 4747, Institute for the Study of Labor (IZA).
  5. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
  6. Alexandre Janiak & Quentin David & Etienne Wasmer, 2008. "Local Social Capital and Geographical Mobility: A Theory," Sciences Po publications 3668, Sciences Po.
  7. Edward L. Glaeser & Charles Redlick, 2008. "Social Capital and Urban Growth," NBER Working Papers 14374, National Bureau of Economic Research, Inc.
  8. Stephen Machin & Panu Pelkonen & Kjell Salvanes, 2008. "Education and Mobility," CEE Discussion Papers, Centre for the Economics of Education, LSE 0100, Centre for the Economics of Education, LSE.
  9. Quentin Max David & Alexandre Janiak & Etienne Wasmer, 2012. "Local social capital and geographical mobility," ULB Institutional Repository 2013/133081, ULB -- Universite Libre de Bruxelles.
  10. Demiralp, Berna, 2009. "The Impact of Information on Migration Outcomes," MPRA Paper 16121, University Library of Munich, Germany.
  11. Emek Basker, 2003. "Education, Job Search and Migration," Labor and Demography, EconWPA 0303003, EconWPA.

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