Working Paper: NBER ID: w4002
Authors: George J. Borjas; Stephen G. Bronars; Stephen J. Trejo
Abstract: Within the conceptual framework of the Roy model, this paper provides an empirical analysis of internal migration flows using data from the National Longitudinal Surveys of Youth. The theoretical approach highlights regional differences in the returns to skills: regions that pay higher returns to skills attract more skilled workers than regions that pay lower returns. Our empirical results suggest that interstate differences in the returns to skills are a major determinant of both the size and skill composition of internal migration flows. Persons whose skills are most mismatched with the reward structure offered by their current state of residence are the persons most likely to leave that state. and these persons tend to relocate in states which offer higher rewards for their particular skills.
Keywords: internal migration; returns to skills; Roy model
JEL Codes: J61; R23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| interstate differences in returns to skills (J24) | size and skill composition of internal migration flows (J61) |
| skill mismatch (J24) | likelihood of migration (F22) |
| economic incentives provided by different regions (R11) | migration decisions (F22) |