Migration Gravity, Networks, and Unemployment

Arbeitspapier

We develop and estimate a theory-consistent gravity model for interregional migration flows in the presence of unemployment. Micro-founded in a setting where search friction regulates labor market transitions, we derive a migration gravity equation for bilateral mobility that embodies a co-determined local unemployment term. As a theory of migration, our model connects directly with longstanding migration puzzles (e.g. declining internal mobility) as well as more novel concepts (e.g. home bias). As a model of unemployment, a migration gravity approach uncovers hitherto under-appreciated interregional roots of local unemployment, and furnishes an unemployment sufficient statistic interpretation to the familiar multilateral migration resistance term. We empirically test the predictions of the model using U.S. county-level data on bilateral migration and unemployment rates, bilateral connectedness data such as Facebook friendship links, and instrumental variable identification based on a novel similarity index of counties' historical ethnic-composition.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15808

Classification and Topics

• Classification: Wirtschaft ; Geographic Labor Mobility; Immigrant Workers ; Unemployment: Models, Duration, Incidence, and Job Search ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: friendship networks ; gravity equation ; internal migration

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Basu, Arnab K. ; Chau, Nancy H. ; Lin, Gary C.
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/272435
• Last update: 10.03.2025, 11:41 AM CET