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New Developments in Understanding Why People Don't Move

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  • Ransom, Tyler

    (University of Oklahoma)

Abstract

This paper provides a non-technical summary of recent research on why people stay put rather than move, even in the face of adverse local economic shocks. I compare three frameworks for understanding migration: the moving costs model, the spatial frictions model, and a newer approach called the SPACE model. The models differ in their explanations of why individuals stay put. The moving costs model emphasizes financial or psychological barriers to migration, the spatial frictions model emphasizes lack of information or job opportunities, and the SPACE model emphasizes persistent preferences for one's current location. While the SPACE model best explains observed migration patterns, all three mechanisms operate simultaneously in practice. Therefore, successful regional policies should address all three: reducing barriers, providing information, and building community ties that make locations persistently attractive.

Suggested Citation

  • Ransom, Tyler, 2026. "New Developments in Understanding Why People Don't Move," IZA Discussion Papers 18410, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18410
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    References listed on IDEAS

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    1. John Kennan & James R. Walker, 2011. "The Effect of Expected Income on Individual Migration Decisions," Econometrica, Econometric Society, vol. 79(1), pages 211-251, January.
    2. Riley Wilson, 2021. "Moving to Jobs: The Role of Information in Migration Decisions," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 1083-1128.
    3. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    4. Benoît Schmutz & Modibo Sidibé, 2019. "Frictional Labour Mobility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(4), pages 1779-1826.
    5. Greg Kaplan & Sam Schulhofer‐Wohl, 2017. "Understanding The Long‐Run Decline In Interstate Migration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58, pages 57-94, February.
    6. Greg Kaplan & Sam Schulhofer‐Wohl, 2017. "Understanding The Long‐Run Decline In Interstate Migration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(1), pages 57-94, February.
    7. Tyler Ransom, 2022. "Labor Market Frictions and Moving Costs of the Employed and Unemployed," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 137-166.
    8. Charly Porcher & Eduardo Morales & Thomas Fujiwara, 2024. "Measuring Information Frictions in Migration Decisions: A Revealed-Preference Approach," NBER Working Papers 32413, National Bureau of Economic Research, Inc.
    9. Koşar, Gizem & Ransom, Tyler & van der Klaauw, Wilbert, 2022. "Understanding migration aversion using elicited counterfactual choice probabilities," Journal of Econometrics, Elsevier, vol. 231(1), pages 123-147.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

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

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