IDEAS home Printed from https://ideas.repec.org/p/nzt/nztwps/01-08.html
   My bibliography  Save this paper

Regional Labour Market Adjustment and the Movements of People: A Review

Author

Listed:
  • David C Maré
  • Wai Kin Choy

    (Motu Economic and Public Policy Research Trust
    Policy Co-ordination and Development, New Zealand Treasury)

Abstract

This review paper examines the link between internal migration and regional labour market adjustment. It outlines the motivation and scope of our enquiry, discusses the three key questions that we plan to pursue, reviews relevant international and New Zealand literature, and outlines proposals for future research. The first key question examines whether migration helps regional labour market adjustment. The second question investigates how important migration is as a regional labour market adjustment mechanism. The final question looks at who is moving and whether it matters for regional labour market adjustment.

Suggested Citation

  • David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:01/08
    as

    Download full text from publisher

    File URL: https://treasury.govt.nz/sites/default/files/2018-02/twp01-08.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
    2. Gavin Cameron & John Muellbauer, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-446, September.
    3. Bartel, Ann P, 1979. "The Migration Decision: What Role Does Job Mobility Play?," American Economic Review, American Economic Association, vol. 69(5), pages 775-786, December.
    4. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
      • Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
      • Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
    5. Crampton, Graham R., 1999. "Urban labour markets," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 39, pages 1499-1557, Elsevier.
    6. Rappaport, Jordan, 2004. "Why are population flows so persistent?," Journal of Urban Economics, Elsevier, vol. 56(3), pages 554-580, November.
    7. Giles, D. E. A. & Hampton, P., 1978. "A note on urban migration in New Zealand," Journal of Urban Economics, Elsevier, vol. 5(3), pages 403-408, July.
    8. Timothy J. Bartik, "undated". "Who Benefits from Local Job Growth: Migrants or Original Residents?," Upjohn Working Papers and Journal Articles tjb1993rs, W.E. Upjohn Institute for Employment Research.
    9. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
    10. Laszlo Matyas, 1997. "Proper Econometric Specification of the Gravity Model," The World Economy, Wiley Blackwell, vol. 20(3), pages 363-368, May.
    11. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association.
    12. 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.
    13. Greenwood, Michael J. & Mueser, Peter R. & Plane, David A. & Schlottmann, Alan M., 1991. "New Directions in Migration Research: Perspectives from Some North American Regional Science Disciplines," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 25(4), pages 237-270.
    14. Nijkamp, Peter & Poot, Jacques, 1987. "Dynamics of generalised spatial interaction models," Regional Science and Urban Economics, Elsevier, vol. 17(3), pages 367-390, August.
    15. Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-446, September.
    16. Alan V. Deardorff, 2011. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 24, pages 267-293, World Scientific Publishing Co. Pte. Ltd..
    17. Greenwood, Michael J, 1969. "An Analysis of the Determinants of Geographic Labor Mobility in the United States," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 189-194, May.
    18. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    19. Graves, Philip E., 1979. "A life-cycle empirical analysis of migration and climate, by race," Journal of Urban Economics, Elsevier, vol. 6(2), pages 135-147, April.
    20. George McCarthy, 1992. "The Role of Unemployment in Triggering Internal Labor Migration," Economics Working Paper Archive wp_75, Levy Economics Institute.
    21. Juan Pablo Juarez, 2000. "Analysis of Interregional Labor Migration in Spain Using Gross Flows," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 377-399, May.
    22. Paolo Mauro & Antonio Spilimbergo, 1999. "How Do the Skilled and the Unskilled Respond to Regional Shocks?: The Case of Spain," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 1-1.
    23. Kennedy, Steven & Borland, Jeff, 2000. "A Wage Curve for Australia?," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 774-803, October.
    24. Balakrishnan, Ravi & Michelacci, Claudio, 2001. "Unemployment dynamics across OECD countries," European Economic Review, Elsevier, vol. 45(1), pages 135-165, January.
    25. Keith Sill, 1997. "Regional employment dynamics," Working Papers 97-28, Federal Reserve Bank of Philadelphia.
    26. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-831, October.
    27. Fry, J. & Fry, T.R.L. & Peter, M.W., 1999. "Inter-Regional Migration in Australia: an Applied Economic Analysis," Monash Econometrics and Business Statistics Working Papers 5/99, Monash University, Department of Econometrics and Business Statistics.
    28. Poot, Jacques, 1986. "A System Approach to Modelling the Inter-urban Exchange of Workers in New Zealand," Scottish Journal of Political Economy, Scottish Economic Society, vol. 33(3), pages 249-274, August.
    29. Diego Comín, 1999. "Regional Mobility and Geography," Working Papers 99-07-050, Santa Fe Institute.
    30. Greenwood, Michael J. & Hunt, Gary L., 1989. "Jobs versus amenities in the analysis of metropolitan migration," Journal of Urban Economics, Elsevier, vol. 25(1), pages 1-16, January.
    31. Dumond, J Michael & Hirsch, Barry T & Macpherson, David A, 1999. "Wage Differentials across Labor Markets and Workers: Does Cost of Living Matter?," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 577-598, October.
    32. Joshua H. Gallin, 1999. "Net migration and state labor market dynamics," Finance and Economics Discussion Series 1999-16, Board of Governors of the Federal Reserve System (U.S.).
    33. Paul Cashin & Loris Strappazzon, 1998. "Disparities in Australian Regional Incomes: Are They Widening or Narrowing?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(1), pages 3-26, March.
    34. repec:imf:imfops:177 is not listed on IDEAS
    35. Gordon Hughes & Barry McCormick, 1991. "Housing Markets, Unemployment and Labour Market Flexibility in the U.K," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 83-114, National Bureau of Economic Research, Inc.
    36. Fredrik Carlsen, 2000. "Testing Equilibrium Models of Regional Disparities," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(1), pages 1-24, February.
    37. Mazumdar, Dipak, 1987. "Rural-urban migration in developing countries," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 28, pages 1097-1128, Elsevier.
    38. Treyz, George I, et al, 1993. "The Dynamics of U.S. Internal Migration," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 209-214, May.
    39. J Shen, 1999. "Modelling Regional Migration in China: Estimation and Decomposition," Environment and Planning A, , vol. 31(7), pages 1223-1238, July.
    40. Rappaport, Jordan, 2005. "How does labor mobility affect income convergence?," Journal of Economic Dynamics and Control, Elsevier, vol. 29(3), pages 567-581, March.
    41. Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-144, February.
    42. Hanson, Gordon H. & Slaughter, Matthew J., 2002. "Labor-market adjustment in open economies: Evidence from US states," Journal of International Economics, Elsevier, vol. 57(1), pages 3-29, June.
    43. Gordon, Ian R, 1985. "The Cyclical Interaction between Regional Migration, Employment and Unemployment: A Time Series Analysis for Scotland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(2), pages 135-158, June.
    44. Fredriksson, Peter, 1999. "The Dynamics of Regional Labor Markets and Active Labor Market Policy: Swedish Evidence," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 623-648, October.
    45. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 529-554, July.
    46. Fields, Gary S, 1979. "Place-to-Place Migration: Some New Evidence," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 21-32, February.
    47. Guy Debelle & James Vickery, 1999. "Labour Market Adjustment: Evidence on Interstate LabourMobility," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(3), pages 249-263, September.
    48. Johnes, Geraint & Hyclak, Thomas, 1994. "House Prices, Migration, and Regional Labor Markets," Journal of Housing Economics, Elsevier, vol. 3(4), pages 312-329, December.
    49. Nijkamp, Peter & Rietveld, Piet & Snickars, Folke, 1987. "Regional and multiregional economic models: A survey," Handbook of Regional and Urban Economics, in: P. Nijkamp (ed.), Handbook of Regional and Urban Economics, edition 1, volume 1, chapter 7, pages 257-294, Elsevier.
    50. Gareth Leeves, 1999. "Countercyclical Unemployment Outflows and Labour Reallocation," Australian Economic Papers, Wiley Blackwell, vol. 38(3), pages 290-309, September.
    51. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David C. Maré & Steven Stillman, 2010. "The Impact of Immigration on the Geographic Mobility of New Zealanders," The Economic Record, The Economic Society of Australia, vol. 86(273), pages 247-259, June.
    2. Wai Kin Choy & David C Mare & Peter Mawson, 2002. "Modelling Regional Labour Market Adjustment in New Zealand," Treasury Working Paper Series 02/01, New Zealand Treasury.
    3. Isabelle Sin & Steven Stillman, 2016. "Economic liberalisation and the mobility of minority groups: evidence from Māori in New Zealand," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-18, December.
    4. Isabelle Sin & Steven Stillman, 2005. "The Geographical Mobility of Maori in New Zealand," Working Papers 05_05, Motu Economic and Public Policy Research.
    5. Michelle Poland & David C Maré, 2005. "Defining Geographic Communities," Urban/Regional 0509016, University Library of Munich, Germany.
    6. Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
    7. Papps, Kerry L. & Newell, James O., 2002. "Identifying Functional Labour Market Areas in New Zealand: A Reconnaissance Study Using Travel-to-Work Data," IZA Discussion Papers 443, Institute of Labor Economics (IZA).
    8. The Treasury, 2001. "Geography and the Inclusive Economy: A Regional Perspective," Treasury Working Paper Series 01/17, New Zealand Treasury.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    2. Stephen Drinkwater, 2003. "Estimating the willingness to move within Great Britain: Importance and implications," School of Economics Discussion Papers 1203, School of Economics, University of Surrey.
    3. Brian Cushing & Jacques Poot, 2004. "Crossing boundaries and borders: Regional science advances in migration modelling," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 317-338, Springer.
    4. Joshua H. Gallin, 1999. "Net migration and state labor market dynamics," Finance and Economics Discussion Series 1999-16, Board of Governors of the Federal Reserve System (U.S.).
    5. Cameron, G. & Muellbauer, J., 1999. "Earnings, Unemployment, and Housing: Evidence from a Panel of British Regions," Economics Papers 1999-w7, Economics Group, Nuffield College, University of Oxford.
    6. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    7. Wouter Vermeulen & J. van Ommeren, 2006. "Housing supply and the interaction of regional population and employment," CPB Discussion Paper 65, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Rappaport, Jordan, 2005. "How does labor mobility affect income convergence?," Journal of Economic Dynamics and Control, Elsevier, vol. 29(3), pages 567-581, March.
    9. Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006. "Housing Market Dynamics and Regional Migration in Britain," CEPR Discussion Papers 5832, C.E.P.R. Discussion Papers.
    10. Fredrik Carlsen & Kåre Johansen & Knut RØed, 2006. "Wage Formation, Regional Migration and Local Labour Market Tightness," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 423-444, August.
    11. Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006. "Housing Market Dynamics and Regional Migration in Britain," CEPR Discussion Papers 5832, C.E.P.R. Discussion Papers.
    12. Tani, Massimiliano, 2003. "Have Europeans become more mobile? A note on regional evolutions in the EU: 1988-1997," Economics Letters, Elsevier, vol. 80(1), pages 23-30, July.
    13. Fredrik Carlsen & Kåre Johansen, 2004. "Subjective Measures of Employment Opportunities and Interregional Migration," LABOUR, CEIS, vol. 18(4), pages 563-589, December.
    14. Huber, Peter, 2004. "Inter-regional mobility in the accession countries : a comparison with EU15 member states," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 37(4), pages 393-408.
    15. Giannetti, Mariassunta, 2003. "On the mechanics of migration decisions: skill complementarities and endogenous price differentials," Journal of Development Economics, Elsevier, vol. 71(2), pages 329-349, August.
    16. Partridge, Mark D. & Rickman, Dan S. & Olfert, M. Rose & Ali, Kamar, 2012. "Dwindling U.S. internal migration: Evidence of spatial equilibrium or structural shifts in local labor markets?," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 375-388.
    17. Wouter Vermeulen & Jos Van Ommeren, 2009. "Compensation of Regional Unemployment in Housing Markets," Economica, London School of Economics and Political Science, vol. 76(301), pages 71-88, February.
    18. Angel de la Fuente, "undated". "La dinámica territorial de la población española: Un panorama y algunos resultados provisionales," Studies on the Spanish Economy 05, FEDEA.
    19. David Gray, 2004. "Persistent Regional Unemployment Differentials Revisited," Regional Studies, Taylor & Francis Journals, vol. 38(2), pages 167-176.

    More about this item

    Keywords

    regional labour market; internal migration; regional labour market adjustment;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nzt:nztwps:01/08. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/tregvnz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CSS Web and Publishing, The Treasury (email available below). General contact details of provider: https://edirc.repec.org/data/tregvnz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.