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Title:On the Dynamics of Interstate Migration: Migration Costs and Self-Selection PDF Logo
Authors:Bayer, Christian
Juessen, Falko
Issue Date:2006
Series/Report no.:Technical Report / Universität Dortmund, SFB 475 Komplexitätsreduktion in Multivariaten Datenstrukturen 2006,38
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.
Subjects:Dynamic self-selection
migration
indirect inference
JEL:C20
R23
C61
J61
Document Type:Working Paper
Appears in Collections:Technical Reports, SFB 475, TU Dortmund

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