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Author: Cooper, Joyce M. Richard
Resulting in 1 citation.
1. Cooper, Joyce M. Richard
Migration and Market Wage Risk
Journal of Regional Science 34,4 (November 1994): 563-582.
Cohort(s): NLSY79
Publisher: Blackwell Publishing, Inc. => Wiley Online
Keyword(s): Human Capital; Migration; Modeling, Probit; Wage Dynamics

This paper departs from the human capital tradition in the migration literature by formalizing the market- specific information contained in wages along the lines suggested by Phelp's (1969) 'island parable' of search. It allows us to incorporate the role of market wage variability as a source of information in individual migration decisions. A linear approximation to the expected utility comparison that migrants make is used to formulate a probit specification of the move or stay decision conditional on origin market and individual characteristics. The focus here is on quantifying the effects of the origin market acting through amenities and the share of market-specific wage variability as it affects forecasts of alternative wages and forecast precision. A subsample of employed males, not in school or in the military, from the US National Longitudinal Survey of Youth (NLS) ages 16 to 22 yr. is used for estimation. The empirical results are consistent with the theoretically predicted relationship between migration propensities and regional differences in the information content of wages.
Bibliography Citation
Cooper, Joyce M. Richard. "Migration and Market Wage Risk." Journal of Regional Science 34,4 (November 1994): 563-582.