Did Migration in the 1980s Narrow the North-South Divide?

Abstract

This paper integrates empirical analysis of the decision to migrate from a region with that of destination choice. Thus, the authors are able to study how net migration, and not just gross outflows, are influenced by regional labor-market circumstances. The results suggest that relative regional wages rates, but not relative unemployment and vacancy rates, are effective in reallocating labor from regions experiencing adverse demand shocks. The authors find little evidence that manual labor is migrating from those regions with relatively high manual unemployment but that migration plays a more conventional role in the regional adjustment process for nonmanual workers. Copyright 1994 by The London School of Economics and Political Science.

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