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Job Search, Locus of Control, and Internal Migration

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  • Marco Caliendo
  • Deborah A. Cobb-Clark
  • Juliane Hennecke
  • Arne Uhlendorff

Abstract

Internal migration can substantially improve labor market efficiency. Consequently, policy is often targeted towards reducing the barriers workers face in moving to new labor markets. In this paper we explicitly model internal migration as the result of a job search process and demonstrate that assumptions about the timing of job search have fundamental implications for the pattern of internal migration that results. Unlike standard search models, we assume that job seekers do not know the true job offer arrival rate, but instead form subjective beliefs - related to their locus of control - about the impact of their search effort on the probability of receiving a job offer. Those with an internal locus of control are predicted to search more intensively (i.e. across larger geographic areas) because they expect higher returns to their search effort. However, they are predicted to migrate more frequently only if job search occurs before migration. We then test the empiricalimplications of this model. We find that individuals with an internal locus of control not only express a greater willingness to move, but also undertake internal migration more frequently.

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  • Marco Caliendo & Deborah A. Cobb-Clark & Juliane Hennecke & Arne Uhlendorff, 2016. "Job Search, Locus of Control, and Internal Migration," SOEPpapers on Multidisciplinary Panel Data Research 818, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp818
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    1. Job Search, Locus of Control, and Internal Migration
      by maximorossi in NEP-LTV blog on 2016-02-12 19:56:13

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    Cited by:

    1. Caliendo, Marco & Künn, Steffen & Mahlstedt, Robert, 2017. "Mobility Assistance Programmes for Unemployed Workers, Job Search Behaviour and Labour Market Outcomes," IZA Discussion Papers 11169, Institute of Labor Economics (IZA).
    2. Malte Preuss & Juliane Hennecke, 2017. "Biased by Success and Failure: How Unemployment Shapes Stated Locus of Control," SOEPpapers on Multidisciplinary Panel Data Research 943, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Didier Fouarge & Merve Nezihe Özer & Philipp Seegers, 2019. "Personality traits, migration intentions, and cultural distance," Papers in Regional Science, Wiley Blackwell, vol. 98(6), pages 2425-2454, December.
    4. Aurelian-Petruș Plopeanu & Daniel Homocianu & Nelu Florea & Ovidiu-Aurel Ghiuță & Dinu Airinei, 2019. "Comparative Patterns of Migration Intentions: Evidence from Eastern European Students in Economics from Romania and Republic of Moldova," Sustainability, MDPI, Open Access Journal, vol. 11(18), pages 1-21, September.
    5. Juliane Hennecke, 2020. "Locus of Control and Female Labor Force Participation," Working Papers 2020-03, Auckland University of Technology, Department of Economics.
    6. Ayhan, Sinem H. & Gatskova, Kseniia & Lehmann, Hartmut, 2020. "The impact of non-cognitive skills and risk preferences on rural-to-urban migration in Ukraine," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 144-162.

    More about this item

    Keywords

    Locus of Control; Internal Migration; Mobility; Job Search;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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