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The effect of automation levels on US interstate migration

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  • Chigusa Okamoto

    (The University of Tokyo)

Abstract

This study investigates the extent to which job process automation, which has resulted in wage inequality and job polarization in the USA and has affected US interstate migration over the past two decades. The level of automation in each state is calculated using data on the degree of automation of each occupation. In particular, this study examines how the difference in the levels among states explains the movement of migrants. The results show that people move to states with more automation in skilled occupations and less automation in unskilled occupations. This finding implies that automation has a complementary (substitution) effect on skilled (unskilled) occupations. The results also show that the former effect is larger and more robust than the latter one. Further analyses use migration flow data classified into several subgroups and find that both skilled and unskilled workers in most occupations move to states with more automation in skilled occupations and less automation in unskilled occupations.

Suggested Citation

  • Chigusa Okamoto, 2019. "The effect of automation levels on US interstate migration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 519-539, December.
    • Handle: RePEc:spr:anresc:v:63:y:2019:i:3:d:10.1007_s00168-019-00940-z
    DOI: 10.1007/s00168-019-00940-z
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    Cited by:

    1. Casas, Pablo & Román, Concepción, 2023. "Early retired or automatized? Evidence from the survey of health, ageing and retirement in Europe," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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