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The Wage Dynamics of Internal Migration within the United States

Author

Listed:
  • Jeffrey Yankow

    (Department of Economics, The Ohio State University)

Abstract

Using an extended panel of data from the National Longitudinal Survey of Youth 1979 (NLSY79), this study demonstrates that young interstate migrants receive significant positive returns to geographic mobility. Pecuniary returns generally accumulate over a five year period following migration, during which migrants experience superior wage growth vis-a-vis non-migrants. Fixed-effects estimates suggest that migrants collect a post-migration wage premium of nearly 5 percent. Because fixed-effects estimation accounts for correlation between migration and unobservable individual-specific characteristics (typically referred to as "ability"), the positive effect of migration on wages can not be explained by the hypothesis that the migrant sample are drawn from the upper tail of the ability distribution.

Suggested Citation

  • Jeffrey Yankow, 1999. "The Wage Dynamics of Internal Migration within the United States," Eastern Economic Journal, Eastern Economic Association, vol. 25(3), pages 265-278, Summer.
    • Handle: RePEc:eej:eeconj:v:25:y:1999:i:3:p:265-278
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume25/V25N3P265_278.pdf
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    Citations

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    Cited by:

    1. Prithwiraj (Raj) Choudhury & Cirrus Foroughi & Barbara Larson, 2021. "Work‐from‐anywhere: The productivity effects of geographic flexibility," Strategic Management Journal, Wiley Blackwell, vol. 42(4), pages 655-683, April.
    2. Michaelides, Marios, 2011. "The effect of local ties, wages, and housing costs on migration decisions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(2), pages 132-140, April.
    3. Randall Akee, 2010. "Who Leaves? Deciphering Immigrant Self-Selection from a Developing Country," Economic Development and Cultural Change, University of Chicago Press, vol. 58(2), pages 323-344, January.
    4. Boheim, Rene & Taylor, Mark P., 2007. "From the dark end of the street to the bright side of the road? The wage returns to migration in Britain," Labour Economics, Elsevier, vol. 14(1), pages 99-117, January.
    5. Ng, Kar Yee & Said, Rusmawati, 2015. "The Role of Labour Standards in Shaping Migration: The ASEAN Perspectives," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(2), pages 3-15.
    6. G Di Pietro, 2005. "On Migration and Unemployment: Evidence from Italian Graduates," Economic Issues Journal Articles, Economic Issues, vol. 10(2), pages 11-28, September.
    7. Ham, John C. & Li, Xianghong & Reagan, Patricia B., 2011. "Matching and semi-parametric IV estimation, a distance-based measure of migration, and the wages of young men," Journal of Econometrics, Elsevier, vol. 161(2), pages 208-227, April.
    8. Andrea Cutillo & Claudio Ceccarelli, 2010. "The internal relocation premium: are migrants positively or negatively selected? Evidence from Italy," Working Papers in Public Economics 137, University of Rome La Sapienza, Department of Economics and Law.
    9. Robert A. Nakosteen & Olle Westerlund & Michael Zimmer, 2008. "Migration And Self‐Selection: Measured Earnings And Latent Characteristics," Journal of Regional Science, Wiley Blackwell, vol. 48(4), pages 769-788, October.
    10. Thomas A. Knapp & Nancy E. White & Amy M. Wolaver, 2013. "The Returns to Migration: The Influence of Education and Migration Type," Growth and Change, Wiley Blackwell, vol. 44(4), pages 589-607, December.

    More about this item

    Keywords

    Geographic Mobility; Migrant; Migration; Mobility; Wage;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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