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Differences in opportunities? Wage, unemployment and house-price effects on migration

  • Rabe, Birgitta
  • Taylor, Mark P.

Most previous empirical studies of individual migration choice analyze the reasons associated with out-migration from an origin location. In contrast, we model the migration decision within the context of potential destinations, using British panel data over the period 1991-2003. Contrary to earlier micro studies we show that regional differences in expected individual wages, employment opportunities, and house prices are important determinants of migration, thus confirming results of aggregate analyses. Moreover, we find that it is important to control for unobserved individual heterogeneity. After doing so, the effects on migration choice of individual unemployment and being a council tenant disappear.

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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2010-05.

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Date of creation: 22 Feb 2010
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Publication status: published
Handle: RePEc:ese:iserwp:2010-05
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