NON-METROPOLITAN TO METROPOLITAN AREA MIGRATION OF YOUNG ADULTS

The decisions of young adults from non-metropolitan areas to either migrate to metropolitan areas or remain in non-metropolitan areas following the completion of schooling are studied in this paper. The migration decision is decomposed into an hourly initial earnings component and a cost component comprising the financial, psychic, and employment attainment costs of migration. There are three noteworthy findings. First, while the propensity to migrate increases in educational attainment, contrary to conventional wisdom, this is entirely attributable to lower costs to migration among more educated individuals. Second, weak local economic conditions exert a strong influence on migration behavior. Specifically, high local unemployment rates and low per-capita county income significantly increase the cost of migration. Third, expected differences in initial earnings continue to provide an important incentive for young adults to migrate from non-metropolitan to metropolitan areas.Institutional and Behavioral Economics, Labor and Human Capital,