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Internal Migration, Asymmetric Shocks, and Interprovincial Economic Adjustments in Canada

Author

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  • Serge Coulombe

    (Department of Economics, University of Ottawa, Ontario, Canada scoulomb@uottawa.ca)

Abstract

This article provides an empirical analysis of the role of labor mobility in the intranational (interprovincial) macroeconomic adjustment process in Canada. This analysis is based on a pooled time-series cross-section econometric setup of net migration flows across age groups between the ten Canadian provinces since 1977. The results indicate that interprovincial migration is driven by structural factors such as the long-run regional differential in unemployment rates, labor productivity, and the rural/urban differential structure of the provinces. Furthermore, it appears that interprovincial migration is not that sensitive to regional asymmetric shocks at the business cycle horizon. Finally, using a conditional convergence model of human capital, the author estimates that migration has a powerful effect on the redistribution of human capital across Canadian provinces. With the interprovincial migration process, human capital is redistributed from the more rural to the predominantly urban provinces and from the poor to the rich provinces.

Suggested Citation

  • Serge Coulombe, 2006. "Internal Migration, Asymmetric Shocks, and Interprovincial Economic Adjustments in Canada," International Regional Science Review, , vol. 29(2), pages 199-223, April.
  • Handle: RePEc:sae:inrsre:v:29:y:2006:i:2:p:199-223
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    Citations

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    Cited by:

    1. Matthew Calver & Roland Tusz & Erika Rodrigues, 2015. "Interprovincial Migration in Canada: Implications for Output and Productivity Growth, 1987-2014," CSLS Research Reports 2015-19, Centre for the Study of Living Standards.
    2. Ismael Issifou & Francesco Magris, 2015. "Migration Outflows and Optimal Migration Policy: Rules versus Discretion," Working Papers halshs-01251421, HAL.
    3. Ismael Issifou & Francesco Magris, 2017. "Migration outflows and optimal migration policy: rules versus discretion," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 16(2), pages 87-112, August.
    4. Rémi Bazillier & Francesco Magris & Daniel Mirza, 2017. "Out-migration and economic cycles," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(1), pages 39-69, February.
    5. Viktor Venhorst & Jouke Van Dijk & Leo Van Wissen, 2011. "An Analysis of Trends in Spatial Mobility of Dutch Graduates," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(1), pages 57-82.
    6. Aldashev, Alisher & Dietz, Barbara, 2011. "Determinants of internal migration in Kazakhstan," MPRA Paper 34922, University Library of Munich, Germany.
    7. David Amirault & Daniel de Munnik & Sarah Miller, 2016. "What drags and drives mobility? Explaining Canada's aggregate migration patterns," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 1035-1056, August.
    8. Michel Beine & Serge Coulombe & Wessel N. Vermeulen, 2015. "Dutch Disease and the Mitigation Effect of Migration: Evidence from Canadian Provinces," Economic Journal, Royal Economic Society, vol. 125(589), pages 1574-1615, December.

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