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The effect of local ties, wages, and housing costs on migration decisions

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  • Michaelides, Marios

Abstract

Previous research on migration has focused more on the effect of wage differences between the destination and the origin on migration and less on how non-pecuniary attachments workers have to their current location may affect their migration decisions. In this paper, we examine how the presence of a strong social network and desirable location characteristics in the current location may deter individual migration across U.S. metropolitan areas. Our empirical results show that, controlling for wage and housing cost differences between metropolitan areas, workers with strong attachments to their current location are significantly less likely to move. Interestingly, the effects of a strong social network and desirable location characteristics on individual migration decisions are more important than the effect of wage or housing cost differentials between the destination and the origin.

Suggested Citation

  • Michaelides, Marios, 2011. "The effect of local ties, wages, and housing costs on migration decisions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(2), pages 132-140, April.
  • Handle: RePEc:eee:soceco:v:40:y:2011:i:2:p:132-140
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    Cited by:

    1. Ho, Hui-Ping & Chang, Ching-Ter & Ku, Cheng-Yuan, 2015. "House selection via the internet by considering homebuyers’ risk attitudes with S-shaped utility functions," European Journal of Operational Research, Elsevier, vol. 241(1), pages 188-201.
    2. Hotchkiss, Julie L. & Rupasingha, Anil, 2018. "Individual Social Capital and Migration," FRB Atlanta Working Paper 2018-3, Federal Reserve Bank of Atlanta.
    3. Antoine Bonleu, 2017. "Sun, Regulation and Local Social Networks," Working Papers halshs-01502604, HAL.
    4. Switek, Malgorzata, 2012. "Internal Migration and Life Satisfaction: Well-Being Effects of Moving as a Young Adult," IZA Discussion Papers 7016, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Migration Worker mobility Mobility costs Location amenities Wages Housing costs;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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