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Dual Income Couples and Interstate Migration

  • Bulent Guler

    (Indiana University - Bloomington)

We quantify the contribution of women's labor force attachment on the declining trend in interstate migration. Using CPS and SIPP data, we first document that families in which both spouses have similar incomes, the propensity to migrate is significantly lower than in families with unequal spousal earnings. We construct a labor search model in which households make location, marriage, and divorce decisions. We calibrate the model to match aggregate U.S. statistics on mobility, marriage and labor flows and use it to quantify the effect of a fall in the gender wage gap on interstate migration. Narrowing the gender wage gap increases the women's contribution to the total family income; it induces a higher share of families with both spouses working and more couples with similar incomes. Our model predicts that the observed change in the gender wage gap accounts for 33% of the drop in family migration since 1991.

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File URL: https://economicdynamics.org/meetpapers/2013/paper_898.pdf
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Paper provided by Society for Economic Dynamics in its series 2013 Meeting Papers with number 898.

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Date of creation: 2013
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Handle: RePEc:red:sed013:898
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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  1. Jeremy Greenwood & Nezih Guner & Georgi Kocharkov & Cezar Santos, 2011. "Technology and the Changing Family: A Unified Model of Marriage, Divorce, Educational Attainment and Married Female Labor-Force Participation," Economie d'Avant Garde Research Reports 18, Economie d'Avant Garde.
  2. Jesus Fernandez-Villaverde & Dirk Krueger, 2002. "Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data," NBER Working Papers 9382, National Bureau of Economic Research, Inc.
  3. Janice Compton & Robert A. Pollak, 2007. "Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas?," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 475-512.
  4. repec:mpr:mprres:7714 is not listed on IDEAS
  5. Thomas BAUDIN & David de la CROIX & Paula GOBBI, 2012. "DINKs, DEWKs & Co. Marriage, Fertility and Childlessness in the United States," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2012013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Dana Rotz, 2011. "Why Have Divorce Rates Fallen? The Role of Women's Age at Marriage," Mathematica Policy Research Reports ed0498975f9b467b9858ee065, Mathematica Policy Research.
  7. Moscarini, Giuseppe & Thomsson, Kaj, 2006. "Occupational and Job Mobility in the US," Working Papers 19, Yale University, Department of Economics.
  8. Saks, Raven E., 2008. "Job creation and housing construction: Constraints on metropolitan area employment growth," Journal of Urban Economics, Elsevier, vol. 64(1), pages 178-195, July.
  9. Hernan Winkler, 2011. "The Effect of Homeownership on Geographic Mobility and Labor Market Outcomes," 2011 Meeting Papers 196, Society for Economic Dynamics.
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