IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2002-031.html
   My bibliography  Save this paper

A Model of Multiple Equilibria in Geographic Labor Mobility

Author

Listed:
  • Mr. Luis Ubeda
  • Mr. 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.

Suggested Citation

  • Mr. Luis Ubeda & Mr. Antonio Spilimbergo, 2002. "A Model of Multiple Equilibria in Geographic Labor Mobility," IMF Working Papers 2002/031, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/031
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=15628
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
    2. Masson,Paul R. & Taylor,Mark P. (ed.), 1993. "Policy Issues in the Operation of Currency Unions," Cambridge Books, Cambridge University Press, number 9780521434553.
    3. 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, vol. 36(2), pages 337-351, October.
    4. 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) 475, University of Warwick, Department of Economics.
    5. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    6. George J. Borjas, 2021. "Does Immigration Grease the Wheels of the Labor Market?," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 14, pages 431-484, World Scientific Publishing Co. Pte. Ltd..
    7. DaVanzo, Julie, 1978. "Does Unemployment Affect Migration?-Evidence from Micro Data," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 504-514, November.
    8. 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 189-194, May.
    9. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
    10. Daveri, Francesco & Faini, Riccardo, 1999. "Where Do Migrants Go?," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 595-622, October.
    11. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-930, September.
    12. 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.
    13. Eichengreen, Barry, 1993. "European Monetary Unification," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1321-1357, September.
    14. 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 356-362, November.
    15. 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, vol. 52(1), pages 31-64, February.
    16. 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.
    17. Spilimbergo, Antonio, 1999. "Labor Market Integration, Unemployment, and Transfers," Review of International Economics, Wiley Blackwell, vol. 7(4), pages 641-650, November.
    18. Bound, John & Holzer, Harry J, 2000. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 20-54, January.
    19. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    20. Oded Stark, 1991. "The Migration of Labor," Blackwell Books, Wiley Blackwell, number 1557860300, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edward L. Glaeser & Charles Redlick, 2009. "Social Capital and Urban Growth," International Regional Science Review, , vol. 32(3), pages 264-299, July.
    2. Spilimbergo, Antonio & Ubeda, Luis, 2004. "Family attachment and the decision to move by race," Journal of Urban Economics, Elsevier, vol. 55(3), pages 478-497, May.
    3. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, 2015. "Family Values And The Regulation Of Labor," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 599-630, August.
    4. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    5. Basker, Emek, 2018. "Education, Job Search, and Migration," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(4), November.
    6. Stephen Machin & Kjell G. Salvanes & Panu Pelkonen, 2012. "Education And Mobility," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 417-450, April.
    7. Edward L. Glaeser & Charles Redlick, 2008. "Social Capital and Urban Growth," NBER Working Papers 14374, National Bureau of Economic Research, Inc.
    8. Ermisch, John & Belot, Michèle, 2006. "Friendship ties and geographical mobility: evidence from the BHPS," ISER Working Paper Series 2006-33, Institute for Social and Economic Research.
    9. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, 2015. "Family Values And The Regulation Of Labor," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 599-630, August.
    10. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    11. repec:hal:spmain:info:hdl:2441/10058 is not listed on IDEAS
    12. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    13. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: A Theory," IZA Discussion Papers 3668, Institute of Labor Economics (IZA).
    14. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h482kc28p is not listed on IDEAS
    15. Okuyama, Naoko & Inaba, Yoji, 2017. "Influence of natural disasters on social engagement and post-disaster well-being: The case of the Great East Japan Earthquake," Japan and the World Economy, Elsevier, vol. 44(C), pages 1-13.
    16. 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 of Labor Economics (IZA).
    17. repec:hal:spmain:info:hdl:2441/10055 is not listed on IDEAS
    18. Demiralp, Berna, 2009. "The Impact of Information on Migration Outcomes," MPRA Paper 16121, University Library of Munich, Germany.
    19. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    20. repec:hal:spmain:info:hdl:2441/20g3idj0jd9iqosvjjdcbu44lu is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Spilimbergo, Antonio & Ubeda, Luis, 2004. "Family attachment and the decision to move by race," Journal of Urban Economics, Elsevier, vol. 55(3), pages 478-497, May.
    2. Ning Jia & Raven Molloy & Christopher Smith & Abigail Wozniak, 2023. "The Economics of Internal Migration: Advances and Policy Questions," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 144-180, March.
    3. S.M. Turab Hussain, 2005. "Rural to Urban Migration and Network Effects in an Extended Family Framework," Microeconomics Working Papers 22257, East Asian Bureau of Economic Research.
    4. Fidrmuc, Jan, 2001. "Migration and adjustment to shocks in transition economies," ZEI Working Papers B 23-2001, University of Bonn, ZEI - Center for European Integration Studies.
    5. Fredrik Carlsen & Kåre Johansen & Knut RØed, 2006. "Wage Formation, Regional Migration and Local Labour Market Tightness," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 423-444, August.
    6. Hubert Jayet, 1996. "L'analyse économique des migrations, une synthèse critique," Revue Économique, Programme National Persée, vol. 47(2), pages 193-226.
    7. Pia M. Orrenius, 1999. "The role of family networks, coyote prices and the rural economy in migration from Western Mexico: 1965-1994," Working Papers 9910, Federal Reserve Bank of Dallas.
    8. Pedersen, Peder J. & Pytlikova, Mariola & Smith, Nina, 2004. "Selection or Network Effects? Migration Flows into 27 OECD Countries, 1990-2000," IZA Discussion Papers 1104, Institute of Labor Economics (IZA).
    9. Svenja G�rtner, 2016. "New Macroeconomic Evidence on Internal Migration in Sweden, 1967-2003," Regional Studies, Taylor & Francis Journals, vol. 50(1), pages 137-153, January.
    10. Jan Fidrmuc, 2002. "Migration and Regional Adjustment and Asymmetric Shocks in Transition Economies," William Davidson Institute Working Papers Series 441, William Davidson Institute at the University of Michigan.
    11. Robert E.B. Lucas, 2007. "Migration and rural development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 99-122.
    12. Jim Millington, 2000. "Migration and Age: The Effect of Age on Sensitivity to Migration Stimuli," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 521-533.
    13. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    14. Blackaby, David H. & Drinkwater, Stephen, 2004. "Migration and Labour Market Differences: The Case of Wales," IZA Discussion Papers 1275, Institute of Labor Economics (IZA).
    15. Brian Cushing & Jacques Poot, 2004. "Crossing boundaries and borders: Regional science advances in migration modelling," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 317-338, Springer.
    16. Cristina Procházková Ilinitchi, 2010. "Selected Migration Theories and their Importance on Drawing Migration Policies [Vybrané teorie migrace a jejich význam při vytváření migračních politik]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2010(6), pages 3-26.
    17. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2019. "Locus of control and internal migration," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    18. Fidrmuc, Jan, 2004. "Migration and regional adjustment to asymmetric shocks in transition economies," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 230-247, June.
    19. Andrés Rodríguez-Pose & Tobias Ketterer, 2015. "Do we follow the money? The drivers of migration across regions in the EU," REGION, European Regional Science Association, vol. 2, pages 27-45.
    20. Damien Gaumont & Alice Mesnard, 2000. "Altruism and international labour migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 113-126.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2002/031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.