Immigration's Role in Regional Adjustment: City Level Evidence of Spatial Arbitrage

Michael I. Cragg and Matthew Kahn

Harvard Institute of Economic Research Working Papers from Harvard - Institute of Economic Research

Abstract: This paper uses 1990 Micro Census Data to study city-to-city migration as a function of crosssectional differentials in economic opportunity. We test whether people move from low economic opportunity areas; and, people move to high economic opportunity areas. We test hypotheses concerning which demographic groups arbitrage cross-city differences, whether gross migration and net migration flows yield the same inferences concerning arbitrage and test whether immigrants arbitrage cross-sectional differentials like U.S. natives. For college educated men ages 22-25, we estimate a net-migration elasticity of 2.85 with respect to metropolitan net income.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:fth:harver:1821

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