Regional Labor Market Adjustments in the United States

Mai Dao, Davide Furceri and Prakash Loungani

No 2014/211, IMF Working Papers from International Monetary Fund

Abstract: We examine patterns of regional adjustments to shocks in the US during the past four decades. We find that the response of interstate migration to relative labor market conditions has decreased, while the role of the unemployment rate as absorber of regional shocks has increased. However, the response of net migration to regional shocks is stronger during aggregate downturns and increased particularly during the Great Recession. We offer a potential explanation for the cyclical pattern of migration response based on the variation in consumption risk sharing.

Keywords: WP; demand shock; labor market; participation rate; Interstate migration; labor mobility; regional labor markets; migration rate; migration response; employment growth; labor demand shock; migration data; migration sensitivity; Migration; Labor demand; Employment; Labor markets; Labor force; Europe (search for similar items in EconPapers)
Pages: 51
Date: 2014-11-25
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Citations: View citations in EconPapers (41)

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Working Paper: Regional labor market adjustment in the United States (2015)
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