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Dual Income Couples and Interstate Migration

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  • Bulent Guler

    (Indiana University - Bloomington)

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    Abstract

    We quantify the contribution of women's labor force attachment on the declining trend in interstate migration. Using CPS and SIPP data, we first document that families in which both spouses have similar incomes, the propensity to migrate is significantly lower than in families with unequal spousal earnings. We construct a labor search model in which households make location, marriage, and divorce decisions. We calibrate the model to match aggregate U.S. statistics on mobility, marriage and labor flows and use it to quantify the effect of a fall in the gender wage gap on interstate migration. Narrowing the gender wage gap increases the women's contribution to the total family income; it induces a higher share of families with both spouses working and more couples with similar incomes. Our model predicts that the observed change in the gender wage gap accounts for 33% of the drop in family migration since 1991.

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    Bibliographic Info

    Paper provided by Society for Economic Dynamics in its series 2013 Meeting Papers with number 898.

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    Date of creation: 2013
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    Handle: RePEc:red:sed013:898

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    1. Bulent Guler & Fatih Guvenen & Giovanni L. Violante, 2009. "Joint-search theory: new opportunities and new frictions," Staff Report 426, Federal Reserve Bank of Minneapolis.
    2. Dora L. Costa & Matthew E. Kahn, 2000. "Power Couples: Changes In The Locational Choice Of The College Educated, 1940-1990," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1287-1315, November.
    3. Jeremy Greenwood & Nezih Guner & Georgi Kocharkov & Cezar Santos, 2012. "Technology and the Changing Family: A Unified Model of Marriage, Divorce, Educational Attainment and Married Female Labor-Force Participation," Working Paper Series of the Department of Economics, University of Konstanz 2012-21, Department of Economics, University of Konstanz.
    4. Greg Kaplan & Sam Schulhofer-Wohl, 2012. "Understanding the Long-Run Decline in Interstate Migration," NBER Working Papers 18507, National Bureau of Economic Research, Inc.
    5. Abigail Wozniak, 2010. "Are College Graduates More Responsive to Distant Labor Market Opportunities?," Journal of Human Resources, University of Wisconsin Press, vol. 45(4), pages 944-970.
    6. Saks, Raven E., 2008. "Job creation and housing construction: Constraints on metropolitan area employment growth," Journal of Urban Economics, Elsevier, vol. 64(1), pages 178-195, July.
    7. Henry Hyatt & Erika McEntarfer, 2012. "Job-to-Job Flows and the Business Cycle," Working Papers 12-04, Center for Economic Studies, U.S. Census Bureau.
    8. Thomas BAUDIN & David de la CROIX & Paula GOBBI, 2012. "DINKs, DEWKs & Co. Marriage, Fertility and Childlessness in the United States," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2012013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    10. Fernando Ferreira & Joseph Gyourko & Joseph Tracy, 2008. "Housing Busts and Household Mobility," NBER Working Papers 14310, National Bureau of Economic Research, Inc.
    11. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
    12. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
    13. Matthew J. Notowidigdo, 2011. "The Incidence of Local Labor Demand Shocks," 2011 Meeting Papers 629, Society for Economic Dynamics.
    14. Hernan Winkler, 2011. "The Effect of Homeownership on Geographic Mobility and Labor Market Outcomes," 2011 Meeting Papers 196, Society for Economic Dynamics.
    15. Sandell, Steven H, 1977. "Women and the Economics of Family Migration," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 406-14, November.
    16. Ganong, Peter & Shoag, Daniel, 2012. "Why Has Regional Convergence in the U.S. Stopped?," Working Paper Series rwp12-028, Harvard University, John F. Kennedy School of Government.
    17. John Kennan & James R. Walker, 2003. "The Effect of Expected Income on Individual Migration Decisions," NBER Working Papers 9585, National Bureau of Economic Research, Inc.
    18. Rubén Hernández-Murillo & Lesli S. Ott & Michael T. Owyang & Denise Whalen, 2011. "Patterns of interstate migration in the United States from the survey of income and program participation," Review, Federal Reserve Bank of St. Louis, issue May, pages 169-186.
    19. Jonathan F. Pingle, 2006. "The relocation decisions of working couples," Finance and Economics Discussion Series 2006-33, Board of Governors of the Federal Reserve System (U.S.).
    20. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
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