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Does Low Wealth Constrain Long-Distance Migration?

Author

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  • Peter McHenry

    (Peter McHenry is Assistant Professor of Economics and Public Policy at the College of William and Mary.)

Abstract

Some families may have too little wealth (or liquidity) to finance a long-distance move, which may involve transportation costs and foregone earnings. Using the National Longitudinal Survey of Youth 1979 (NLSY79) and the Survey of Income and Program Participation (SIPP), the author assesses whether wealth holdings directly influence migration decisions in the United States. The analysis focuses on long-distance migration and shows consistently that migration is common among households with little or negative net worth and that greater wealth does not increase the likelihood of migration. In addition, differential wealth holdings do not explain why minority groups and the less-educated are relatively unlikely to undertake long-distance moves. The author also finds little evidence that wealth holdings influence a person’s migration response to local labor demand shocks.

Suggested Citation

  • Peter McHenry, 2015. "Does Low Wealth Constrain Long-Distance Migration?," ILR Review, Cornell University, ILR School, vol. 68(1), pages 79-119, January.
    • Handle: RePEc:sae:ilrrev:v:68:y:2015:i:1:p:79-119
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    Cited by:

    1. González Chapela, Jorge, 2020. "Patience goes a long way: Evidence from Spain," MPRA Paper 98711, University Library of Munich, Germany.

    More about this item

    Keywords

    migration; wealth; NLSY79; SIPP;
    All these keywords.

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