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Because costs of moving can be larger for the poor

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Unformatted text preview: poorest individuals. Because costs of moving can be larger for the poor and because having more education can potentially generate greater returns to migration than having less education. C. 1. Domestic migration Who migrates? See Table 10.2 for domestic migration. a. Peaks for ages 20-24: 15 percent across state lines. At age 32—10 percent; at age 47 only 5 percent. b. Among those under 40, college grads much more likely to move regions, but difference diminishes to zero by 40s. c. So labor market is national for college grads, regional for <h.s. d. Note that figures in table 10.2 include return and repeat movers and that calculations of returns to migration should include such movers, but often data don’t allow. 2. Returns to domestic migration Increase in pay for moves across regions within U.S. is about 10 percent on average, but it is negative ten percent for “tied movers”—those moving for family reasons. It can still be rational for a family to move together; if husband’s pay exceeds wife’s, then his gain...
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