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Geographic Mobility over the Life Cycle

Author

Listed:
  • Díaz, Antonia
  • Janez, Alvaro
  • Wellschmied, Felix

Abstract

When opportunities vary across locations and mobility is frictional, economic outcomes depend on birthplace. Using Spanish micro data and a life-cycle model, we show that location differences mainly reflect variation in (i) skill accumulation, (ii) job stability and opportunities, and (iii) information about alternative locations. For young individuals, information costs are the main barrier to mobility. Consequently, transfers to residents of distressed areas reduce inequality in economic outcomes with little effect on mobility. In contrast, policies that financially incentivize moving to high-opportunity locations increase inequality and do not significantly raise mobility toward those locations.

Suggested Citation

  • Díaz, Antonia & Janez, Alvaro & Wellschmied, Felix, 2026. "Geographic Mobility over the Life Cycle," CEPR Discussion Papers 21006, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:21006
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    File URL: https://cepr.org/publications/DP21006
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    Keywords

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    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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