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Education and geographical mobility: the role of the job surplus

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  • Michael Amior

Abstract

Better-educated workers form many more long-distance job matches, and they move more quickly following local employment shocks. I argue this is a consequence of larger dispersion in wage offers, independent of geography. In a frictional market, this generates larger surpluses for workers in new matches, which can better justify the cost of moving - should the offer originate from far away. The market is then "thinner" but better integrated spatially. I motivate my hypothesis with new evidence on mobility patterns and subjective moving costs;and I test it using wage returns to local and long-distance matches over the jobs ladder.

Suggested Citation

  • Michael Amior, 2019. "Education and geographical mobility: the role of the job surplus," CEP Discussion Papers dp1616, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1616
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    References listed on IDEAS

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    1. Amior, Michael, 2015. "Why are higher skilled workers more mobile geographically?: the role of the job surplus," LSE Research Online Documents on Economics 61279, London School of Economics and Political Science, LSE Library.
    2. Volker Nocke & Stephen Yeaple, 2008. "An Assignment Theory of Foreign Direct Investment," Review of Economic Studies, Oxford University Press, vol. 75(2), pages 529-557.
    3. Abigail Wozniak, 2010. "Are College Graduates More Responsive to Distant Labor Market Opportunities?," Journal of Human Resources, University of Wisconsin Press, vol. 45(4), pages 944-970.
    4. Rafael Lopes de Melo, 2018. "Firm Wage Differentials and Labor Market Sorting: Reconciling Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 313-346.
    5. Greg Kaplan & Sam Schulhofer-Wohl, 2012. "Interstate Migration Has Fallen Less Than You Think: Consequences of Hot Deck Imputation in the Current Population Survey," Demography, Springer;Population Association of America (PAA), vol. 49(3), pages 1061-1074, August.
    6. Joan Monras, 2015. "Economic Shocs and Internal Migration," Sciences Po Economics Discussion Papers 2015-01, Sciences Po Departement of Economics.
    7. Amior, Michael, 2018. "The contribution of foreign migration to local labor market adjustment," LSE Research Online Documents on Economics 91705, London School of Economics and Political Science, LSE Library.
    8. Hilber, Christian A.L. & Robert-Nicoud, Frédéric, 2013. "On the origins of land use regulations: Theory and evidence from US metro areas," Journal of Urban Economics, Elsevier, vol. 75(C), pages 29-43.
    9. Isaac Sorkin, 2018. "Ranking Firms Using Revealed Preference," The Quarterly Journal of Economics, Oxford University Press, vol. 133(3), pages 1331-1393.
    10. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, January.
    11. Paul S. Davies & Michael J. Greenwood & Haizheng Li, 2001. "A Conditional Logit Approach to U.S. State‐to‐State Migration," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 337-360, May.
    12. Lutgen, Vanessa & Van der Linden, Bruno, 2015. "Regional equilibrium unemployment theory at the age of the Internet," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 50-67.
    13. John Kennan, 2015. "Spatial Variation in Higher Education Financing and the Supply of College Graduates," NBER Working Papers 21065, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Monica Langella & Alan Manning, 2019. "Diversity and Neighbourhood Satisfaction," Economic Journal, Royal Economic Society, vol. 129(624), pages 3219-3255.
    2. Benoît Schmutz & Modibo Sidibé & Elie Vidal-Naquet, 2020. "Why are Low-Skilled Workers less Mobile? The Role of Mobility Costs and Spatial Frictions," AMSE Working Papers 2031, Aix-Marseille School of Economics, France.
    3. Michael Amior, 2018. "The Contribution of Foreign Migration to Local Labor Market Adjustment," CEP Discussion Papers dp1582, Centre for Economic Performance, LSE.

    More about this item

    Keywords

    geographical mobility; job search; education;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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