Mobility and Regional Economic Downturns

Author: Hacker, R. Scott

Source: Journal of Regional Science, Volume 40, Number 1, February 2000 , pp. 45-65(21)

Publisher: Wiley-Blackwell

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Abstract:

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.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/1467-9787.00164

Affiliations: Jönköping International Business School, Sweden

Publication date: February 1, 2000

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