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Spatial Dependence and Social Networks in Regional Labor Migration

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  • Koji Murayama
  • Jun Nagayasu

Abstract

This study empirically analyzes the determinants of regional labor migration in Japan. Using spatial models of origin-destination flows and considering the network effects of labor, we obtain results more consistent with standard migration theory than previous studies. First, unlike prior research, we find that migration decisions are made by economic motivations consistent with economic theories. In particular, the unemployment rate in the destination region and income in the origin are found to be driving forces of labor migration. Second, we report that network effects, which help reduce migration costs, have encouraged the relocation of labor. Third, by using several de nitions of spatial weights, we show that spatial dependence in regional migration is more complex than what previous studies assumed.

Suggested Citation

  • Koji Murayama & Jun Nagayasu, 2018. "Spatial Dependence and Social Networks in Regional Labor Migration," DSSR Discussion Papers 88, Graduate School of Economics and Management, Tohoku University.
    • Handle: RePEc:toh:dssraa:88
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    File URL: http://hdl.handle.net/10097/00123751
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