This preview shows page 1. Sign up to view the full content.
Unformatted text preview: exceeds her loss in absolute dollars. 3. How much inter-regional domestic migration? A lot, compared to European countries, and also in absolute number of movers—about 2 million employed Americans change region every year. This has contributed to convergence of inter-regional wage differentials over the past fifty years. Only a little, if we note that only one half of the regional differential disappears over a 30 year period. Even today, the convergence is only partial and of course some of it is due to other factors (e.g., the diffusion of air conditioning made the South a more productive region). 4. Examples of Puerto Rico and EU, showing non-economic barriers to migration a. Puerto Rico Average annual 2001 compensation per worker is $46K in U.S. and $21 K in Puerto Rico. They are all eligible to migrate to mainland. In past 50 years, 25 percent have, which might seem like a lot, except that it implies that 75 percent did not move. Implication: large immobilities—costs to migration—even when borders are open— perhaps loss of social a...
View Full Document
This note was uploaded on 06/06/2010 for the course ECON 151 taught by Professor Staff during the Spring '08 term at University of California, Berkeley.
- Spring '08