Resource title

On the Dynamics of Interstate Migration: Migration Costs and Self-Selection

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Resource description

This paper develops a tractable dynamic microeconomic model of migration decisions that is aggregated to describe the behavior of interregional migration. Our structural approach allows us to deal with dynamic self-selection problems that arise from the endogeneity of location choice and the persistency of migration incentives. Keeping track of the distribution of migration incentives over time has important consequences, because the dynamics of this distribution influences the estimation of structural parameters, such as migration costs. For US interstate migration, we obtain a cost estimate of somewhat less than one-half of an average annual household income. This is substantially less than the migration costs estimated by previous studies. We attribute this diĀ¤erence to the treatment of the dynamic self-selection problem.

Resource author

Christian Bayer, Falko Juessen

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Resource publish date

Resource language

eng

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text/html

Resource resource URL

http://hdl.handle.net/10419/22682

Resource license

Adapt according to the presented license agreement and reference the original author.