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Imperfect Mobility

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  • Cai, Zhengyu

Abstract

This study investigates why the strong form of the spatial equilibrium is weakly supported in the literature. Using a discrete choice model, it shows that the strong form of the spatial equilibrium is rarely observed because workers are imperfectly mobile from the perspective of researchers. Incorporating the discrete choice model, a Markov chain is used to model the spatial dynamics of the population distribution. For a given location choice set, the population distribution is shown to converge to a unique spatial steady state. Microdata from the American Community Survey show that the model assumption is reasonable and support the model predictions.

Suggested Citation

  • Cai, Zhengyu, 2020. "Imperfect Mobility," GLO Discussion Paper Series 623, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:623
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    File URL: https://www.econstor.eu/bitstream/10419/222541/1/GLO-DP-0623.pdf
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    More about this item

    Keywords

    imperfect mobility; heterogeneity; spatial steady state; discrete choice model; Markov chain analysis;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

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