AMENITIES VERSUS LABOR MARKET OPPORTUNITIES: CHOOSING THE OPTIMAL DISTANCE TO MOVE*

David E. Clark · James C. Cosgrove

95 citations0/0 files storedJournal of Regional Science

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Regional Economics and Spatial Analysis Housing Market and Economics Migration and Labor Dynamics

Abstract

ABSTRACT. A recent debate in the regional economics literature has focused attention on the motivation behind an individual's decision to migrate. Human‐capital migration models emphasize labor market disequilibria whereas alternative (hedonic) migration models stress households’altered demand for nontraded goods. In this paper, we test the relative importance of these two possible motivations for moving between metropolitan areas. We use an intercity hedonic model to decompose wages into equilibrium and disequilibrium components. We then compare the separate influences of amenities and the disequilibrium component of wages on the distance moved between two metropolitan areas. Our findings indicate that both economic factors and amenity differentials are significant factors in explaining regional migration.

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References

1962The Costs and Returns of Human Migration 1982Wages, Rents, and the Quality of Life 1970The Costs and Returns of Human Migration 1970The Distribution of Labor Incomes: A Survey with Special Reference to the Human Capital Approach 1973Interpreting the Effect of Distance on Migration 1979Household migration: Theoretical and empirical results 1979A life-cycle empirical analysis of migration and climate, by race 1985The choice of functional forms for hedonic price equations: Comment

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