A generalized options approach to aggregate migration with an application to US federal states
AbstractThis paper develops a tractable dynamic microeconomic model of migration decisions that is aggregated to describe the behavior of interregional migration. Our structural approach allows to deal with dynamic self-selection problems that arises from the endogeneity of location choice and the persistency of migration incentives. Keeping track of the distribution dynamics of migration incentives has important consequences, because these dynamics influences the estimation of structural parameters, such as migration costs. For US interstate migration, we obtain a cost estimate of approximately two average annual household incomes. This is at most half of the migration cost estimates reported in previous studies. We attribute this difference to the treatment of the self selection problem
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number 656.
Date of creation: 03 Dec 2006
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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Self selection; migration; indirect inference; dynamic optimization;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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- NEP-ALL-2007-01-13 (All new papers)
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- Dahl, Michael S. & Sorenson, Olav, 2010.
"The migration of technical workers,"
Journal of Urban Economics,
Elsevier, vol. 67(1), pages 33-45, January.
- Roc Armenter & Francesc Ortega, 2007.
"Credible redistributive policies and migration across US States,"
Economics Working Papers
1022, Department of Economics and Business, Universitat Pompeu Fabra.
- Roc Armenter & Francesc Ortega, 2010. "Credible Redistributive Policies and Migration across US States," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(2), pages 403-423, April.
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