Does Migration Matter? Job Search Outcomes for the Unemployed

Thomas P. Boehm, Herzog, Jr., Henry W. and Alan M. Schlottmann
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Thomas P. Boehm: University of Tennessee, Knoxville
Herzog, Jr., Henry W.: University of Tennessee, Knoxville
Alan M. Schlottmann: University of Tennessee, Knoxville

The Review of Regional Studies, 1998, vol. 28, issue 1, 3-12

Abstract: In this study we investigate migration's effect on labor market transitions. Specifically, we explore transition rates out of unemployment (to employment) and from nonparticipation to active job search. To facilitate this, a multi-state model of the hazard rate is developed and subsequently estimated. Our results strongly suggest that migration is both directly and indirectly associated with a successful transition to re-employment. Among nonparticipating workers, migration at a point in time is shown to be the primary determinant of re-entry into the labor force at a future date. Upon renewed participation and active job search, movers have a relatively higher likelihood of re-employment. This is an important result, for workers in our sample that remain out of the labor force "over time" have quite low re-entry probabilities. Among active job seekers, entry into employment is also directly enhanced through migration. In this regard, migration serves an important indirect role in successful employment transitions by moving workers to labor markets characterized by more favorable employment opportunities (lower unemployment rates). Among both nonparticipants and unemployed members of the labor force, entry into employment is significantly enhanced through this aspect of migration.

Date: 1998
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