IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v18y2018i3p17n7.html
   My bibliography  Save this article

Local Information, Income Segregation, and Geographic Mobility

Author

Listed:
  • Bond Timothy N.

    (Department of Economics, Krannert School of Management, Purdue University, 403 W. State St., Lafayette, IN, USA, 47907)

  • Salisbury Laura

    (Department of Economics, York University, Toronto, Canada)

Abstract

We develop a model of migration in the face of geographic information asymmetries. Firms from a given city observe whether or not a local worker is a member of a disadvantaged local community, a negative indicator of productivity, but do not have this information for migrants to this city. With this knowledge, workers must decide whether to migrate and obscure information about their community of origin. Our model generates results consistent with recent trends in intergenerational mobility and internal migration as well as new predictions about the relationship between migrant outcomes and income segregation. We confirm these predictions using data from the U.S. census.

Suggested Citation

  • Bond Timothy N. & Salisbury Laura, 2018. "Local Information, Income Segregation, and Geographic Mobility," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-17, July.
    • Handle: RePEc:bpj:bejeap:v:18:y:2018:i:3:p:17:n:7
    DOI: 10.1515/bejeap-2017-0314
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/bejeap-2017-0314
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/bejeap-2017-0314?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Salisbury, Laura, 2014. "Selective migration, wages, and occupational mobility in nineteenth century America," Explorations in Economic History, Elsevier, vol. 53(C), pages 40-63.
    2. Katz, Eliakim & Stark, Oded, 1986. "Labor mobility under asymmetric information with moving and signalling costs," Economics Letters, Elsevier, vol. 21(1), pages 89-94.
    3. Allison Shertzer & Randall P. Walsh, 2019. "Racial Sorting and the Emergence of Segregation in American Cities," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 415-427, July.
    4. Raj Chetty & Nathaniel Hendren & Lawrence F. Katz, 2016. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment," American Economic Review, American Economic Association, vol. 106(4), pages 855-902, April.
    5. Katz, Eliakim & Stark, Oded, 1984. "Migration and Asymmetric Information: Comment," American Economic Review, American Economic Association, vol. 74(3), pages 533-534, June.
    6. Katz, Eliakim & Stark, Oded, 1989. "International labour migration under alternative informational regimes: A diagrammatic analysis," European Economic Review, Elsevier, vol. 33(1), pages 127-142, January.
    7. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    8. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Batistich, Mary Kate & Bond, Timothy N. & Linde, Sebastian & Mumford, Kevin J., 2024. "Statistical Discrimination and Optimal Mismatch in College Major Selection," IZA Discussion Papers 17237, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Jun Sung & Lee, Jongkwan, 2019. "The role of intergenerational mobility in internal migration," Economic Modelling, Elsevier, vol. 81(C), pages 1-15.
    2. Cavit Baran & Eric Chyn & Bryan A. Stuart, 2024. "The Great Migration and Educational Opportunity," American Economic Journal: Applied Economics, American Economic Association, vol. 16(3), pages 354-398, July.
    3. Krimmel, Jacob, 2018. "Persistence of Prejudice: Estimating the Long Term Effects of Redlining," SocArXiv jdmq9, Center for Open Science.
    4. Deepak Saraswat, 2022. "Labor Market Impacts of Exposure to Affordable Housing Supply: Evidence from the Low-Income Housing Tax Credit Program," Working papers 2022-09, University of Connecticut, Department of Economics.
    5. Andrés Rodríguez-Pose & Michael Storper, 2020. "Housing, urban growth and inequalities: The limits to deregulation and upzoning in reducing economic and spatial inequality," Urban Studies, Urban Studies Journal Limited, vol. 57(2), pages 223-248, February.
    6. Francesco Andreoli & Eugenio Peluso, 2016. "So close yet so unequal: Reconsidering spatial inequality in U.S. cities," Working Papers 21/2016, University of Verona, Department of Economics.
    7. Martti Kaila & Emily Nix & Krista Riukula, 2021. "Disparate Impacts of Job Loss by Parental Income and Implications for Intergenerational Mobility," Opportunity and Inclusive Growth Institute Working Papers 53, Federal Reserve Bank of Minneapolis.
    8. Bratu, Cristina & Bolotnyy, Valentin, 2023. "Immigrant intergenerational mobility: A focus on childhood environment," European Economic Review, Elsevier, vol. 151(C).
    9. Alex Bell & Raj Chetty & Xavier Jaravel & Neviana Petkova & John Van Reenen, 2019. "Who Becomes an Inventor in America? The Importance of Exposure to Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 647-713.
    10. Chong Lu, 2022. "The effect of migration on rural residents’ intergenerational subjective social status mobility in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3279-3308, October.
    11. Adam M. Lavecchia & Philip Oreopoulos & Robert S. Brown, 2020. "Long-Run Effects from Comprehensive Student Support: Evidence from Pathways to Education," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 209-224, June.
    12. Michael J. Kottelenberg & Steven F. Lehrer, 2019. "How Skills and Parental Valuation of Education Influence Human Capital Acquisition and Early Labor Market Return to Human Capital in Canada," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 735-778.
    13. Nathaniel Baum-Snow & Daniel Hartley & Kwan Ok Lee, 2019. "The Long-Run Effects of Neighborhood Change on Incumbent Families," Working Paper Series WP-2019-2, Federal Reserve Bank of Chicago.
    14. Ran Abramitzky & Leah Platt Boustan & Dylan Connor, 2020. "Leaving the Enclave: Historical Evidence on Immigrant Mobility from the Industrial Removal Office," Working Papers 2020-35, Princeton University. Economics Department..
    15. Boneva, Teodora & Golin, Marta & Kaufmann, Katja Maria & Rauh, Christopher, 2022. "Beliefs about Maternal Labor Supply," IZA Discussion Papers 15788, Institute of Labor Economics (IZA).
    16. repec:osf:socarx:nkydt_v1 is not listed on IDEAS
    17. Bastian, Jacob E. & Black, Dan A., 2024. "Relaxing financial constraints with tax credits and migrating out of rural and distressed America," Journal of Public Economics, Elsevier, vol. 234(C).
    18. Bezin, Emeline & Moizeau, Fabien, 2017. "Cultural dynamics, social mobility and urban segregation," Journal of Urban Economics, Elsevier, vol. 99(C), pages 173-187.
    19. Dylan Shane Connor & Michael Storper, 2020. "The changing geography of social mobility in the United States," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 117(48), pages 30309-30317, December.
    20. Luís Clemente-Casinhas & Luís Filipe Martins & Alexandra Ferreira-Lopes, 2025. "Using Survey Data to Estimate Intergenerational Mobility in Income and Education in Portugal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 176(1), pages 51-106, January.
    21. Robert Collinson & John Eric Humphries & Nicholas Mader & Davin Reed & Daniel Tannenbaum & Winnie van Dijk, 2024. "Eviction and Poverty in American Cities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(1), pages 57-120.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:18:y:2018:i:3:p:17:n:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.