The Effects of Labor Market Characteristics on Interstate Migration: An Empirical Analysis

This paper utilizes a cost-benefit model based on the Harris-Todaro Model of Migration, to estimate the impact of labor market characteristics on an aggregate and individual level data. The data obtained for 48 Contiguous United States from the year 2008-2011 and the American Community Survey, U.S. Census and the Survey of Income Program Participation (SIPP). The model relates interstate migration to labor market characteristics such as unemployment, wage differentials and other factors such as number of bordering states, educational attainment and amenities. The results show that wage differentials have the largest impact on interstate migration, but the individual migration decision is more complicated. Educational attainment and the number of homes within a state that have access to electricity are also correlated with an individual\u27s migration decision