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Local Shocks and Internal Migration

Local Shocks and Internal Migration
Author: Marius Faber
Publisher:
Total Pages: 0
Release: 2022
Genre:
ISBN:

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Migration is a key mechanism through which local labor markets adjust to economic shocks. In this paper, we analyze the migration response of American workers to two of the most important shocks that hit US manufacturing since the 1990s: Chinese import competition and the introduction of industrial robots. Exploiting plausibly exogenous variation in exposure across US local labor markets over time, we establish a new fact. Even though both shocks drastically reduced employment in the manufacturing sector, only robots led to a sizable decline in population size. We provide evidence that negative employment spillovers outside manufacturing, caused by robots but not by Chinese imports, can explain the different migration responses. We interpret our findings through the lens of a model that highlights two mechanisms: the cost savings that each shock provides and the degree of complementarity between directly and indirectly exposed industries.


Local Shocks and Internal Migration

Local Shocks and Internal Migration
Author: Marius Faber
Publisher:
Total Pages: 86
Release: 2021
Genre: China
ISBN:

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Migration has long been considered one of the key mechanisms through which labor markets adjust to economic shocks. In this paper, we analyze the migration response of American workers to two of the most important shocks that hit US manufacturing since the late 1990s -- Chinese import competition and the introduction of industrial robots. Exploiting plausibly exogenous variation in exposure across US local labor markets over time, we show that robots caused a sizable reduction in population size, while Chinese imports did not. We rationalize these results in two steps. First, we provide evidence that negative employment spillovers outside manufacturing, caused by robots but not by Chinese imports, are an important mechanism for the different migration responses triggered by the two shocks. Next, we present a model where workers are geographically mobile and compete with either machines or foreign labor in the completion of tasks. The model highlights that two key dimensions along which the shocks differ -- the cost savings they provide and the degree of complementarity between directly and indirectly exposed industries -- can explain their disparate employment effects outside manufacturing and, in turn, the differential migration response.


Economic Shocks and Internal Migration

Economic Shocks and Internal Migration
Author: Joan Monras
Publisher:
Total Pages: 74
Release: 2018
Genre: Labor market
ISBN:

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Internal migration can respond to local shocks through either changes in in- or out-migration rates. This paper documents that most of the response of internal migration is accounted for by variation in in-migration. I develop and estimate a parsimonious general equilibrium dynamic spatial model around this fact. I then use the model to evaluate the speed of convergence and long run change in welfare across metropolitan areas given the heterogeneous incidence of the Great Recession at the local level. The paper shows that while there are some lasting effects of the Great Recession across locations, at least 60 percent of the initial differences potentially dissipate across space within around 10 years. This is true even when locals from the most affected metropolitan areas do not out-migrate in higher proportions in response to local shocks.


Essays in Internal and International Migration

Essays in Internal and International Migration
Author: Joan Monras
Publisher:
Total Pages:
Release: 2014
Genre:
ISBN:

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This dissertation investigates how internal migration spreads local shocks to the national market. The first chapter describes a dynamic model of internal migration where in equilibrium there are always positive internal migration flows across locations. When a shock in one of these location happens, internal migration flows are diverted away from the shocked locations, spreading the shock nationally. The second chapter explains how this is the main mechanism through which international migration is absorbed. The third chapter, documents how this exact same mechanism helps to mitigate the disproportionate effect that the Great Recession had on particular locations.


Internal Migration in the United States

Internal Migration in the United States
Author: Raven S. Molloy
Publisher: DIANE Publishing
Total Pages: 47
Release: 2011-08
Genre: Social Science
ISBN: 1437987419

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This report reviews patterns in migration within the U.S. over the past thirty years. Internal migration has fallen noticeably since the 1980s, reversing increases from earlier in the century. The decline in migration has been widespread across demographic and socioeconomic groups, as well as for moves of all distances. Although a convincing explanation for the secular decline in migration remains elusive and requires further research, the authors find only limited roles for the housing market contraction and the economic recession in reducing migration recently. Despite its downward trend, migration within the U.S. remains higher than that within most other developed countries. Charts and tables. This is a print on demand report.


Internal Migration

Internal Migration
Author: Alan A. Brown
Publisher:
Total Pages: 538
Release: 1977
Genre: Social Science
ISBN:

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Interdisciplinary research view and comparison of the functions and dynamics of internal migration - includes models, case studies, theoretical reflections and implications for regional development policy. Bibliographys, graphs and statistical tables.


Internal Migration in the U.S.

Internal Migration in the U.S.
Author: Andrew David Foote
Publisher:
Total Pages:
Release: 2015
Genre:
ISBN: 9781339064505

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The aggregate economy relies on the allocation of resources to their most productive use. One important resource in the aggregate economy is labor, which is reallocated through individual migration. In this dissertation, I investigate what causes migration, as well as labor reallocation more broadly, and the effect of this migration on the economy as a whole. In the first paper of my dissertation, I show that negative house price shocks cause homeowners unable to move to better labor markets due to equity constraints. I find that a 10% decrease in house prices causes homeowners to be 33% less likely to move. I calculate how this constraint on mobility affected the aggregate unemployment rate, and find that it can explain up to 7% of the increase in the unemployment rate in the Great Recession. In the second paper, coauthored with Michel Grosz and Ann Stevens, we measure how labor demand shocks cause individuals to exit the labor force. We estimate the effect of mass layoffs on the change in the size of the local labor force, decomposing this change into four channels: migration, disability insurance enrollment, retirement, or non-participation. The first three channels explain two-thirds of the change in the labor force following a mass layoff, and non-participation was a much more prominent channel in the most recent recession. We discuss the implications of this finding for future output growth and labor market efficiency. Finally, in the third paper, I estimate how individuals react to changes in crime rates in their county. In order to estimate this effect, I measure the effect of crime changes on migration, and I decompose net migration into in- and out-migration, within or outside of the metropolitan area. I find much smaller effects on migration out of the metropolitan area, and insignificant effects on other margins of migration. These results are much smaller that previous estimates, and suggest that the costs of crime in terms of labor allocation are much lower than previously estimated.


Researching Internal Migration

Researching Internal Migration
Author: S. Irudaya Rajan
Publisher: Taylor & Francis
Total Pages: 172
Release: 2022-10-31
Genre: Social Science
ISBN: 1000773558

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Researching Internal Migration is a comprehensive guide for researchers and professionals to study internal migration in developing and underdeveloped economies. This book: • Explains key theoretical concepts related to migration • Guides students and researchers on how to design surveys and the utility of census data • Unravels the complexities of large data sets and their interpretation • Includes techniques for indirect measurement • Presents methodology for estimating remittances at the sub-national and national levels • Acquaints the impact of migration during emergency situations or pandemics like COVID-19 • Offers perspectives and tools for evaluating the policy impact of migration Accessibly written, this book will be an essential theoretical and empirical guide for researchers in development studies, public policy, population studies, human geography and migration and diaspora studies.


The Once and Future Worker

The Once and Future Worker
Author: Oren Cass
Publisher: Encounter Books
Total Pages: 230
Release: 2018-11-13
Genre: Political Science
ISBN: 1641770155

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“[Cass’s] core principle—a culture of respect for work of all kinds—can help close the gap dividing the two Americas....” – William A. Galston, The Brookings Institution The American worker is in crisis. Wages have stagnated for more than a generation. Reliance on welfare programs has surged. Life expectancy is falling as substance abuse and obesity rates climb. These woes are not the inevitable result of irresistible global and technological forces. They are the direct consequence of a decades-long economic consensus that prioritized increasing consumption—regardless of the costs to American workers, their families, and their communities. Donald Trump’s rise to the presidency focused attention on the depth of the nation’s challenges, yet while everyone agrees something must change, the Left’s insistence on still more government spending and the Right’s faith in still more economic growth are recipes for repeating the mistakes of the past. In this groundbreaking re-evaluation of American society, economics, and public policy, Oren Cass challenges our basic assumptions about what prosperity means and where it comes from to reveal how we lost our way. The good news is that we can still turn things around—if the nation’s proverbial elites are willing to put the American worker’s interests first. Which is more important, pristine air quality, or well-paying jobs that support families? Unfettered access to the cheapest labor in the world, or renewed investment in the employment of Americans? Smoothing the path through college for the best students, or ensuring that every student acquires the skills to succeed in the modern economy? Cutting taxes, expanding the safety net, or adding money to low-wage paychecks? The renewal of work in America demands new answers to these questions. If we reinforce their vital role, workers supporting strong families and communities can provide the foundation for a thriving, self-sufficient society that offers opportunity to all.


Moving for Prosperity

Moving for Prosperity
Author: World Bank
Publisher: World Bank Publications
Total Pages: 407
Release: 2018-06-14
Genre: Business & Economics
ISBN: 1464812829

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Migration presents a stark policy dilemma. Research repeatedly confirms that migrants, their families back home, and the countries that welcome them experience large economic and social gains. Easing immigration restrictions is one of the most effective tools for ending poverty and sharing prosperity across the globe. Yet, we see widespread opposition in destination countries, where migrants are depicted as the primary cause of many of their economic problems, from high unemployment to declining social services. Moving for Prosperity: Global Migration and Labor Markets addresses this dilemma. In addition to providing comprehensive data and empirical analysis of migration patterns and their impact, the report argues for a series of policies that work with, rather than against, labor market forces. Policy makers should aim to ease short-run dislocations and adjustment costs so that the substantial long-term benefits are shared more evenly. Only then can we avoid draconian migration restrictions that will hurt everybody. Moving for Prosperity aims to inform and stimulate policy debate, facilitate further research, and identify prominent knowledge gaps. It demonstrates why existing income gaps, demographic differences, and rapidly declining transportation costs mean that global mobility will continue to be a key feature of our lives for generations to come. Its audience includes anyone interested in one of the most controversial policy debates of our time.