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

Christian Bayer and Falko Juessen

No 2006,38, Technical Reports from Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen

Abstract: 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 di¤erence to the treatment of the dynamic self-selection problem.

Keywords: Dynamic self-selection; migration; indirect inference (search for similar items in EconPapers)
JEL-codes: C20 C61 J61 R23 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: On the Dynamics of Interstate Migration: Migration Costs and Self-Selection (2012)
Working Paper: On the Dynamics of Interstate Migration: Migration Costs and Self-Selection (2008)
Working Paper: On the Dynamics of Interstate Migration: Migration Costs and Self-Selection (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:sfb475:200638

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