Local amenities and life-cycle migration: Do people move for jobs or fun?
Do households move for jobs or fun, and where do they go when they move? We address these questions using the 1970-2000 US Census. Based on a panel of quality of life and business environment measures, households prefer MSAs in warm coastal areas and non-metropolitan locations, while firms prefer large, growing cities. In addition, cities with improving business environments acquire increasing shares of workers, especially workers with high levels of human capital; cities with improving consumer amenities become relatively more populated by retirees. Further analysis of individual level migration decisions indicates that regardless of marital status, young, highly educated households tend to move towards places with higher quality business environments. This tendency is especially pronounced among highly educated couples who are more subject to job market co-location problems. In contrast, regardless of education, couples near retirement tend to move away from places with favorable business environments and towards places with highly valued consumer amenities. These patterns help explain why areas unattractive to both households and business have struggled, as with upstate New York, while the sun-belt and other regions are thriving.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Graves, Philip E. & Knapp, Thomas A., 1988. "Mobility behavior of the elderly," Journal of Urban Economics, Elsevier, vol. 24(1), pages 1-8, July.
- Smith, V. Kerry, 1983. "The role of site and job characteristics in hedonic wage models," Journal of Urban Economics, Elsevier, vol. 13(3), pages 296-321, May.
- Janice Compton & Robert A. Pollak, 2004.
"Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas,"
NBER Working Papers
10918, National Bureau of Economic Research, Inc.
- Janice Compton & Robert A. Pollak, 2007. "Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas?," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 475-512.
- Krumm, Ronald J., 1980. "Neighborhood amenities: An economic analysis," Journal of Urban Economics, Elsevier, vol. 7(2), pages 208-224, March.
- Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
- Stuart Gabriel & Stuart S. Rosenthal, 2003.
"Quality of the Business Environment Versus Quality of Life: Do Firms and Households Like the Same Cities?,"
8615, USC Lusk Center for Real Estate.
- Stuart A. Gabriel & Stuart S. Rosenthal, 2004. "Quality of the Business Environment Versus Quality of Life: Do Firms and Households Like the Same Cities?," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 438-444, February.
- Greenwood, Michael J, et al, 1991. "Migration, Regional Equilibrium, and the Estimation of Compensating Differentials," American Economic Review, American Economic Association, vol. 81(5), pages 1382-90, December.
- Berger, Mark C. & Blomquist, Glenn C. & Sabirianova Peter, Klara, 2008.
"Compensating differentials in emerging labor and housing markets: Estimates of quality of life in Russian cities,"
Journal of Urban Economics,
Elsevier, vol. 63(1), pages 25-55, January.
- Berger, Mark C. & Blomquist, Glenn C. & Peter, Klara Sabirianova, 2003. "Compensating Differentials in Emerging Labor and Housing Markets: Estimates of Quality of Life in Russian Cities," IZA Discussion Papers 900, Institute for the Study of Labor (IZA).
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- Jordan Rappaport, 1999.
"Why are population flows so persistent?,"
Research Working Paper
99-13, Federal Reserve Bank of Kansas City.
- Dora L. Costa & Matthew E. Kahn, 1999.
"Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990,"
NBER Working Papers
7109, National Bureau of Economic Research, Inc.
- 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, Oxford University Press, vol. 115(4), pages 1287-1315.
- Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 774-806, August.
- Jordan Rappaport, 2004.
"Moving to Nice Weather,"
Econometric Society 2004 North American Summer Meetings
188, Econometric Society.
- Graves, Philip E & Waldman, Donald M, 1991. "Multimarket Amenity Compensation and the Behavior of the Elderly," American Economic Review, American Economic Association, vol. 81(5), pages 1374-81, December.
- Kahn Matthew E., 1995. "A Revealed Preference Approach to Ranking City Quality of Life," Journal of Urban Economics, Elsevier, vol. 38(2), pages 221-235, September.
- Mueser Peter R. & Graves Philip E., 1995. "Examining the Role of Economic Opportunity and Amenities in Explaining Population Redistribution," Journal of Urban Economics, Elsevier, vol. 37(2), pages 176-200, March.
- Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, vol. 78(1), pages 89-107, March.
When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:64:y:2008:i:3:p:519-537. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.