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Labor Reallocation over the Business Cycle: New Evidence from Internal Migration

Listed author(s):
  • Raven E. Saks
  • Abigail Wozniak

This article establishes the cyclical properties of a novel measure of worker reallocation: long-distance migration rates within the United States. Combining evidence from a number of data sets spanning the entire postwar era, we find that internal migration within the United States is procyclical. This result cannot be explained by cyclical variation in relative local economic conditions, suggesting that the net benefit of moving rises during booms. Migration is most procyclical for younger labor-force participants. Therefore, cyclical fluctuations in the net benefit of moving appear to be related to conditions in the labor market and the spatial reallocation of labor.

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File URL: http://dx.doi.org/10.1086/660772
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File URL: http://dx.doi.org/10.1086/660772
Download Restriction: Access to the online full text or PDF requires a subscription.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 29 (2011)
Issue (Month): 4 ()
Pages: 697-739

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Handle: RePEc:ucp:jlabec:doi:10.1086/660772
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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