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Mobility and Regional Economic Downturns
Author(s) -
Hacker R. Scott
Publication year - 2000
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/1467-9787.00164
Subject(s) - unemployment , multinomial logistic regression , economics , panel study of income dynamics , labour economics , demographic economics , panel data , econometrics , macroeconomics , computer science , machine learning
In this paper I show how higher unemployment in a region may reduce thepopulation's residential mobility within that region. A period of higher unemployment creates more uncertainty among individuals about future income and place of employment so those with significant moving costs are more likely to consider delaying a move. Periods of relatively higher unemployment may also be characterized by fewer new hirings and fewer job quits, both of which tend to dampen mobility. A multinomial logit analysis using Panel Study of Income Dynamics data is used to examine the effect of state unemployment rates on the decision to move.