Unformatted text preview: each year. (Borjas, 2008). -Effect: Internal migration raises wages over 10%. -Internal migration costs young workers $250,000. -Determinants of migration: o Income differential between destination and origin (+2%) o A 10% increase in employment growth in the origin (-2%) o Doubling distance between origin and destination (-50%). -Has also been found to depend on worker characteristics: o Age (-) o Education (+) -Within the US (African Ameircans 1900-1950; California post war). Rationality for choosing to migrate: -What are the costs? o Moving expenses. o Language barriers. o Risk. o Social/psychic cost. o Lost wages? Migration and Immigration: Labor Market Effects -Simplest model: Workers are substitutes. Short term job loss, long term adjustment (adjustment costs)....
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- Fall '11
- Economics, Internal Migration