Conference Paper BHPS-2009 Conference: the 2009 British Household Panel Survey Research Conference, 9-11 July 2009, Colchester, UK
Differences in opportunities? Wage, unemployment and house-price effects on migration
Most previous empirical studies of individual migration choice analyze the reasons
associated with out-migration from an origin location. In contrast, we model the
migration decision within the context of potential destinations, using British panel data
over the period 1993-2007. Contrary to earlier micro studies we show that regional
differences in expected individual wages, employment opportunities, and house prices
are important determinants of migration, thus confirming results of aggregate analyses.
Moreover, we find that it is important to control for unobserved individual
heterogeneity. After doing so, the effects on migration choice of individual
unemployment and being a council tenant disappear.