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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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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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  1. Guler, Bulent & Guvenen, Fatih & Violante, Giovanni L., 2012. "Joint-search theory: New opportunities and new frictions," Journal of Monetary Economics, Elsevier, vol. 59(4), pages 352-369.
  2. Matthew J. Notowidigdo, 2011. "The Incidence of Local Labor Demand Shocks," NBER Working Papers 17167, National Bureau of Economic Research, Inc.
  3. John Kennan & James R. Walker, 2011. "The Effect of Expected Income on Individual Migration Decisions," Econometrica, Econometric Society, vol. 79(1), pages 211-251, 01.
  4. 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.
  5. Henry Hyatt & Erika McEntarfer, 2012. "Job-to-Job Flows and the Business Cycle," Working Papers 12-04, Center for Economic Studies, U.S. Census Bureau.
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  7. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
  8. Sandell, Steven H, 1977. "Women and the Economics of Family Migration," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 406-14, November.
  9. Rubén Hernández-Murillo & Lesli S. Ott & Michael T. Owyang & Denise Whalen, 2011. "Patterns of Interstate Migration in the United States from the Survey of Income and Program Participation," Mathematica Policy Research Reports 81db00bb87b14081b19193438, Mathematica Policy Research.
  10. Ferreira, Fernando & Gyourko, Joseph & Tracy, Joseph, 2010. "Housing busts and household mobility," Journal of Urban Economics, Elsevier, vol. 68(1), pages 34-45, July.
  11. Greg Kaplan & Sam Schulhofer-Wohl, 2012. "Understanding the long-run decline in interstate migration," Working Papers 697, Federal Reserve Bank of Minneapolis.
  12. Schulhofer-Wohl, Sam, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Feb, pages 1-17.
  13. Hernan Winkler, 2011. "The Effect of Homeownership on Geographic Mobility and Labor Market Outcomes," 2011 Meeting Papers 196, Society for Economic Dynamics.
  14. BAUDIN, Thomas & DE LA CROIX, David & GOBBI, Paula, 2012. "DINKs, DEWKs & Co. Marriage, fertility and childlessness in the United States," CORE Discussion Papers 2012051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  15. Ganong, Peter & Shoag, Daniel, 2012. "Why Has Regional Convergence in the U.S. Stopped?," Working Paper Series rwp12-028, Harvard University, John F. Kennedy School of Government.
  16. Claudia Goldin, 2006. "The Quiet Revolution that Transformed Women's Employment, Education, and Family," NBER Working Papers 11953, National Bureau of Economic Research, Inc.
  17. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  18. Jonathan F. Pingle, 2006. "The relocation decisions of working couples," Finance and Economics Discussion Series 2006-33, Board of Governors of the Federal Reserve System (U.S.).
  19. Abigail Wozniak, 2010. "Are College Graduates More Responsive to Distant Labor Market Opportunities?," Journal of Human Resources, University of Wisconsin Press, vol. 45(4), pages 944-970.
  20. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
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