Net Migration and State Labor Market Dynamics

Existing empirical estimates of net migration models are not identified because they lack an explicit measure of expected future conditions. I find that using actual one‐period‐ahead net migration at the state level to control for expectations reduces the strength of the relationship between current...

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Veröffentlicht in:Journal of labor economics 2004-01, Vol.22 (1), p.1-21
1. Verfasser: Gallin, Joshua Hojvat
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creator Gallin, Joshua Hojvat
description Existing empirical estimates of net migration models are not identified because they lack an explicit measure of expected future conditions. I find that using actual one‐period‐ahead net migration at the state level to control for expectations reduces the strength of the relationship between current wages and net migration by more than one‐third. I use the case of Michigan to show how existing empirical models mischaracterize the response of migration to shocks that are expected to be transitory. I add migration to a labor market model and simulate responses to permanent and transitory demand shocks.
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subjects Bias
Cost control
Dynamics
Economic conditions
Economic indicators
Economic models
Economic theory
Economics
Elasticity of demand
Empirical tests
Employment
Employment rates
Estimates
Generalized method of moments
Housing prices
Human migration
Industrial relations
Labor demand
Labor market
Labor markets
Labor supply
Labour market
Market conditions
Migration
U.S.A
Unemployment
Unemployment rates
Variables
Wages
Wages & salaries
title Net Migration and State Labor Market Dynamics
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