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Business Cycles, Migration and Health

  • Timothy Halliday


    (Department of Economics, University of Hawaii at Manoa)

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    This paper uses data from the PSID to investigate how selective migration affects the relationship between business cycles and health. We show that, among the healthy, migration is used to insure against macroeconomic fluctuations. However, among the unhealthy, there is no relationship between migration and business cycles. In other words, illness erases a person’s ability to use migration to hedge against business cycle fluctuations. This suggests that recessions should induce an out-migration of disproportionately healthy people from economically depressed areas. This implies that - ceterus paribus - mortality and morbidity rates should be counter-cyclical.

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    File Function: First version, 2005
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    Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200513.

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    Length: 18 pages
    Date of creation: 03 Mar 2005
    Date of revision: 05 Aug 2005
    Handle: RePEc:hai:wpaper:200513
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    1. Halliday, Timothy J. & Kimmitt, Michael C., 2008. "Selective Migration and Health," IZA Discussion Papers 3458, Institute for the Study of Labor (IZA).
    2. Meghir, Costas & Pistaferri, Luigi, 2002. "Income Variance Dynamics and Heterogeneity," CEPR Discussion Papers 3632, C.E.P.R. Discussion Papers.
    3. Ruhm, Christopher J., 2003. "Healthy Living in Hard Times," IZA Discussion Papers 711, Institute for the Study of Labor (IZA).
    4. Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
    5. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September.
    6. Christopher J. Ruhm, 1996. "Are Recessions Good For Your Health?," NBER Working Papers 5570, National Bureau of Economic Research, Inc.
    7. Borjas, George J & Bronars, Stephen G & Trejo, Stephen J, 1992. "Assimilation and the Earnings of Young Internal Migrants," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 170-75, February.
    8. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
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