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The effect of local ties, wages, and housing costs on migration decisions

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  • Michaelides, Marios

Abstract

Previous research on migration has focused more on the effect of wage differences between the destination and the origin on migration and less on how non-pecuniary attachments workers have to their current location may affect their migration decisions. In this paper, we examine how the presence of a strong social network and desirable location amenities in the current location may deter individual migration across U.S. metropolitan areas. Our empirical results show that, controlling for wage and housing cost differences between metropolitan areas, workers with strong attachments to their current location are significantly less likely to move. Interestingly, the effects of a strong social network and desirable location amenities on individual migration decisions are more important than the effect of wage or housing cost differentials between the destination and the origin.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20379.

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Date of creation: 04 Dec 2009
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Handle: RePEc:pra:mprapa:20379

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Keywords: migration; worker mobility; mobility costs; location amenities; wages; housing costs;

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  1. Gilles Grenier, 2003. "The Internal Migration of the Immigrant and Native-Born populations in Canada between 1976 and 1996," Working Papers 0301E, University of Ottawa, Department of Economics.
  2. Chen, Yong & Rosenthal, Stuart S., 2008. "Local amenities and life-cycle migration: Do people move for jobs or fun?," Journal of Urban Economics, Elsevier, vol. 64(3), pages 519-537, November.
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Cited by:
  1. Switek, Malgorzata, 2012. "Internal Migration and Life Satisfaction: Well-Being Effects of Moving as a Young Adult," IZA Discussion Papers 7016, Institute for the Study of Labor (IZA).

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