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Nonlinearities in Interregional Migration Behavior

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  • Roberto Basile
  • Jaewon Lim

Abstract

Traditional “Marshallian†theories predict a linear relationship between internal migration and regional wage differentials. Using panel data on gross place-to-place migration flows in the United States, we estimate a semiparametric version of the modified gravity model and find evidence of a nonlinear effect of wage differentials in line with alternative theories of interregional migration, including the “option value of waiting†theory, liquidity constraints, and wealth-conditioned immobility. Traditionally, the migration decision process is believed to be mainly composed of two criteria: “whether to move†and “where to move.†However, the empirical evidence of nonlinearity found in this study supports the potential presence of another important decision criterion, “when to move†on interregional migration.

Suggested Citation

  • Roberto Basile & Jaewon Lim, 2017. "Nonlinearities in Interregional Migration Behavior," International Regional Science Review, , vol. 40(6), pages 563-589, November.
    • Handle: RePEc:sae:inrsre:v:40:y:2017:i:6:p:563-589
    DOI: 10.1177/0160017615626986
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    3. Marius Braun, 2021. "A Real-Options Analysis of Climate Change and International Migration," MAGKS Papers on Economics 202138, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Jaewon Lim & Jae Hong Kim, 2019. "Joint Determination of Residential Relocation and Commuting: A Forecasting Experiment for Sustainable Land Use and Transportation Planning," Sustainability, MDPI, vol. 11(1), pages 1-24, January.
    5. Braun, Marius, 2022. "A Real-Options Analysis of Climate Change and International Migration," VfS Annual Conference 2022 (Basel): Big Data in Economics 264006, Verein für Socialpolitik / German Economic Association.
    6. María Gutiérrez-Portilla & Adolfo Maza & María Hierro, 2018. "Foreigners versus natives in Spain: different migration patterns? Any changes in the aftermath of the crisis?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 139-159, July.

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