Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39444
Authors: 
Bayer, Christian
Juessen, Falko
Year of Publication: 
2006
Series/Report no.: 
Wirtschaftstheoretische Diskussionsbeiträge 06-03
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 to 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 difference to the treatment of the dynamic self-selection problem.
Subjects: 
Dynamic self-selection
migration
indirect inference
JEL: 
C61
C20
J61
R23
Document Type: 
Working Paper

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