Immigration's Role in Regional Adjustment: City Level Evidence of Spatial Arbitrage
This paper uses 1990 Micro Census Data to study city-to-city migration as a function of crosssectional differentials in economic opportunity. We test whether people move from low economic opportunity areas; and, people move to high economic opportunity areas. We test hypotheses concerning which demographic groups arbitrage cross-city differences, whether gross migration and net migration flows yield the same inferences concerning arbitrage and test whether immigrants arbitrage cross-sectional differentials like U.S. natives. For college educated men ages 22-25, we estimate a net-migration elasticity of 2.85 with respect to metropolitan net income.
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Web page: http://www.economics.harvard.edu/journals/hier
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