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Spatial Dependence, Social Networks, and Economic Structures in Regional Labor Migration

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  • Murayama, Koji
  • Nagayasu, Jun

Abstract

This study empirically analyzes the determinants of regional labor migration in Japan, where small towns are disappearing due to the shortage of labor. Using spatial models of origin-destination flows and considering network effects of labor and economic structures, we obtain results more consistent with the standard migration theory than previous studies. First, unlike previous studies, we find that migration decisions in Japan are based on economic motivations consistent with economic theories. Particularly, unemployment rates in origins and destinations and income in origins are found to be the determinants of labor migration. Second, we report that network effects, which help reduce migration costs, have encouraged relocation of labor. Third, considering spatial weights based on distance, goods flow, and economic structures, we show that neighbors can be most appropriately defined with economic structures; migration patterns are alike in regions with similar economic structures.

Suggested Citation

  • Murayama, Koji & Nagayasu, Jun, 2019. "Spatial Dependence, Social Networks, and Economic Structures in Regional Labor Migration," MPRA Paper 95691, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95691
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    References listed on IDEAS

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    Cited by:

    1. Koji Murayama & Jun Nagayasu, 2021. "Toward Coexistence of Immigrants and Local People in Japan: Implications from Spatial Assimilation Theory," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    2. Oshan, Taylor M., 2020. "The spatial structure debate in spatial interaction modeling: 50 years on," OSF Preprints 42vxn, Center for Open Science.

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    More about this item

    Keywords

    labor migration; spatial models; regional economy; economic structures; network effects;
    All these keywords.

    JEL classification:

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

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