Can migration decisions be affected by income taxation policies?
In this empirical paper we examine whether or not migration decisions can be affected by individual measures of regional policy. To shed light on the question, we study formation of expected earnings and effect of expected earnings on interregional migration decisions in Finland. We consider how this effect varies among individuals, especially among employees in medical and health care sector and in teaching sector. We generated expected earnings in migration and staying alternatives from an endogenous switching regression. These expected earnings were used as additional explanatory variables in a random parameter logit migration model. In the migration model individual can choose between three alternatives: (s)he can either (i) stay in current region, (ii) migrate to a peripheral region, or (iii) migrate to a growth-centre region. The random parameter logit model allows us to specify the impact of expected earning as a function of occupational dummies and other variables, including a random factor. Our estimation results on a one-percent random sample from the Finnish longitudinal census file indicate that a decision to move is influenced by expected earnings, but the impact is dependent, for example, on occupational and educational group and on region of origin.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brownstone, David & Train, Kenneth, 1999.
"Forecasting new product penetration with flexible substitution patterns,"
University of California Transportation Center, Working Papers
qt1j6814b3, University of California Transportation Center.
- Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
- Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," University of California Transportation Center, Working Papers qt3tb6j874, University of California Transportation Center.
- 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.
- Seater, John J., 1977. "A unified model of consumption, labor supply, and job search," Journal of Economic Theory, Elsevier, vol. 14(2), pages 349-372, April.
- Poirier, Dale J. & Ruud, Paul A., 1981. "On the appropriateness of endogenous switching," Journal of Econometrics, Elsevier, vol. 16(2), pages 249-256, June.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Weiss, Yoram, 1971. "Learning by doing and occupational specialization," Journal of Economic Theory, Elsevier, vol. 3(2), pages 189-198, June.
- Mincer, Jacob, 1978.
"Family Migration Decisions,"
Journal of Political Economy,
University of Chicago Press, vol. 86(5), pages 749-773, October.
- Lucas, Robert E.B., 1993.
"Internal migration in developing countries,"
Handbook of Population and Family Economics,
in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 13, pages 721-798
- Robert E. B. Lucas, 1994. "Internal Migration in Developing Countries," Boston University - Institute for Economic Development 43, Boston University, Institute for Economic Development.
- Jain, Dipak C & Vilcassim, Naufel J & Chintagunta, Pradeep K, 1994. "A Random-Coefficients Logit Brand-Choice Model Applied to Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(3), pages 317-328, July.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
- Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa01p41. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.