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Differences in Opportunities? Wage, Employment and House-Price Effects on Migration

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  • Birgitta Rabe
  • Mark P. Taylor

Abstract

Most previous empirical studies of individual migration choice analyze the reasons associated with out-migration from an origin location. In contrast, we model the migration decision within the context of potential destinations, using British panel data over the period 1991-2003. Contrary to earlier micro studies we show that regional differences in expected individual wages, employment opportunities, and house prices are important determinants of migration, thus confirming results of aggregate analyses. Moreover, we find that it is important to control for unobserved individual heterogeneity. After doing so, the effects on migration choice of individual unemployment and being a council tenant disappear.
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  • Birgitta Rabe & Mark P. Taylor, 2012. "Differences in Opportunities? Wage, Employment and House-Price Effects on Migration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(6), pages 831-855, December.
    • Handle: RePEc:bla:obuest:v:74:y:2012:i:6:p:831-855
    DOI: j.1468-0084.2011.00682.x
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