Spatial Dependence and Social Networks in Regional Labor Migration

Koji Murayama and Jun Nagayasu

No 88, DSSR Discussion Papers from Graduate School of Economics and Management, Tohoku University

Abstract: This study empirically analyzes the determinants of regional labor migration in Japan. Using spatial models of origin-destination flows and considering the network effects of labor, we obtain results more consistent with standard migration theory than previous studies. First, unlike prior research, we find that migration decisions are made by economic motivations consistent with economic theories. In particular, the unemployment rate in the destination region and income in the origin are found to be driving forces of labor migration. Second, we report that network effects, which help reduce migration costs, have encouraged the relocation of labor. Third, by using several de nitions of spatial weights, we show that spatial dependence in regional migration is more complex than what previous studies assumed.

Pages: 35 pages
Date: 2018-10
New Economics Papers: this item is included in nep-geo, nep-mig, nep-soc and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:toh:dssraa:88

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