The Effect of Unemployment Insurance on Geographical Mobility

Total Page:16

File Type:pdf, Size:1020Kb

The Effect of Unemployment Insurance on Geographical Mobility The Effect of Unemployment Insurance on Geographical Mobility Preliminary version − Please do not quote nor distribute without express consent − Tania Fernandez-Navia∗ May 20, 2019 Abstract This paper investigates the effects of unemployment insurance generosity on work- ers' geographical mobility decisions. Identification is based on an unanticipated re- form that reduced the unemployment insurance (UI) replacement rate (RR) in Spain for workers who were laid-off after July 14, 2012. Using administrative data from social security records and a regression discontinuity design, I find that the UI cut increased the probability to migrate to a different province by 4 percentage points, which represents a 25 percent increase with respect to the pre-reform mean. This result is driven by young educated men with no family responsibilities, and at the top 25 percent of the sample income distribution. The findings also suggest that the increase in mobility is due to actual changes in the province of residence, rather than to an increase in commuting distances. Keywords: local labor markets, labor mobility, geographic mobility, unemploy- ment insurance, natural experiment. JEL Codes: J61, J65, J68 ∗University of Barcelona School of Economics, Department of Statistics, Econometrics and Ap- plied Economics. E-mail: [email protected] I am extremely grateful to L´ıdiaFarr´efor her generous advice. This paper benefited from comments and suggestions by Manuel Bagues, Samuel Bentolila, Werner Eichhorst, Libertad Gonz´alez,Juan F. Jimeno, Concepci´oPatxot, Ra´ulRamos, Jan Sthuler, Judit Vall, and Javier V´azquez-Grenno.I also wish to thank participants at the GSE Summer School in Labor Economics (Barcelona), IAB Perspectives on (Un-) Employment Ph.D. Workshop (Nuremberg), 8th ifo Workshop on Regional Economics (Dresden), Observatori d’An`alisii Avaluaci´ode Pol´ıtiquesP´ubliques(Barcelona), SAEe 43 (Madrid), and at the 24th Spring Meeting of Young Economists (Brussels) for helpful comments and discussions. Financial support from Agaur (FI-DGR) is gratefully acknowledged. 1. Introduction Unemployment rates vary widely across and within countries in the EU (see figure A2).12 To adjust for such spatial disparities, geographical labor mobility is one of the most efficient equilibrating mechanisms (Blanchard and Katz, 1992). Yet, labor relocation is limited in the EU relative to other world regions, specially the U.S. (Decressin and Fatas, 1995).3 Nickell(1997) or Bertola(1999) suggest that rigid labor market institutions (e.g. generous unemployment insurance) can help explain the low mobility rates in the EU. But does the generosity of the unemployment insurance (UI) really deter labor ge- ographical relocation? From economic theory, it is unclear in which direction changes in the UI benefit level affect mobility. On the one hand, generous UI can reduce geo- graphic mobility and search effort by increasing reservation wages (Mortensen, 1977). On the other hand, generous UI can enhance productive job search and mobility by reducing the liquidity constraints (Ben-Horim and Zuckerman, 1987). In this paper, I study the causal effect of reducing the UI benefit level on workers' mobility decisions using quasi-experimental evidence from a reform in Spain. More specifically, I exploit a plausible exogenous 10 percentage points cut in the UI re- placement rate (RR) in the aftermath of the Great Recession. Before the policy implementation, the RR was set at 70 percent of the gross earnings during the first 180 days of unemployment, and 60 percent afterwards. On July 11, 2012, the Span- ish government announced that workers who started an unemployment spell after 1The unemployment rate in the EU-28 was 7.6 percent (standard deviation of 4.01) in 2017, compared to 4.4 percent in the U.S. (standard deviation of 0.96). 2At the sub-national level, Italy and Belgium presented some of the largest disparities in unem- ployment in 2017. As an extreme example, the unemployment rates in Italy ranged from 3.1 percent in Provincia Autonoma di Bolzano to 21.6 percent in Calabria. 3In 2013, less than 5 percent of working-age EU citizens lived in a different EU country than the one where they were born. For the U.S., 30 percent of the working-age population lived in 2013 in a state different from their state of birth (Arpaia et al., 2016). Yet, the U.S. is one country, while the EU is the union of several countries with different culture, language, or labor market institutions. Comparing mobility within countries in the EU with mobility across states in the U.S., we observe that the annual rate of sub-national relocation in the EU is around 1 percent, compared to 3 percent in the U.S. 1 14 July 2012 would have their RR reduced to 50 percent after the sixth month of unemployment. The Spanish context presents an interesting case to study. Spain's unemployment rate has been persistently high and very responsive to economic fluctuations. Over the course of the Great Recession, the unemployment rate spiked from 8.23 percent in 2007 to 26.09 percent in 2013.4 Apart from large unemployment, Spain also presents high and stubborn disparities at the sub-national level (see figure A3). Yet, internal relocation has been persistently low after the 70s.5 In fact, Jimeno and Bentolila (1998) argue that the lack of mobility in response to economic differentials in Spain explains part of the large asymmetries in the regional unemployment rates. In this scenario, it is very important to understand whether the Spanish UI system can be co-responsible for the low rates of internal mobility. To conduct the empirical analysis I rely on administrative data from the Social Security records (Muestra Continua de Vidas Laborales, MCVL). To estimate the causal effect of the UI generosity, I use a regression discontinuity (RD) design and explore the mobility decisions of workers who start their unemployment spells around July 15, 2012. For the causal effect of the reform to be identified, workers who became displaced just above and just below the threshold must be comparable. I verify this assumption by showing that the density of the running variable is smooth at the discontinuity and that workers' features are balanced at baseline. Before going to the main results, the first part of the empirical analysis studies the effect of the UI benefit drop on nonemployment duration and subsequent labor market outcomes. In a recent paper, Rebollo-Sanz and Rodr´ıguez-Planas(2018) studies this 4Notice that the structural unemployment rate in Spain is very large. Even in the economic boom that preceded the Great Recession, unemployment rates were around 8 percent. To make clearer this magnitude, the unemployment rate in the peak of the Great Recession was 10 percent in the U.S., and 11 percent in the EU-28. 5Arpaia et al.(2016) shows that the annual flow of internal migration in 2013 in Spain was around 0.25 percent, compared to around 1 percent in the average of the EU-28 countries. In fact, just 21 percent of Spaniards were living in 2017 outside their province (territorial unit that have an average of 0.9 million inhabitants) of birth. 2 question using a difference-in-differences design and a different sample.6 Rebollo-Sanz and Rodr´ıguez-Planas(2018) shows that the 10 percentage points reduction in the UI decreased the expected nonemployment length by 5.7 weeks (or 14 percent) without affecting the job match quality. Using an RD design, I also find that the policy decreased the expected duration of nonemployment by 14 percent without affecting subsequent labor market outcomes.78 I then turn to the main objective of the paper. This is, I look at whether the UI cut has affected workers' geographical mobility decisions. The results show that the reform increased workers' relocation across provinces by 4 percentage points (a 25 percent of the pre-reform mean). This result is mostly driven by educated and young men, without family responsibilities, and at the top 25 percent of the sample income distribution. In addition, the results suggest that the increase in mobility is mainly towards the big cities, and it happens from the beginning of the unemployment spell. This paper aims to contribute to two paths of literature: (1) the studies that analyse the effects of UI generosity on geographical mobility, and (2) the literature that seeks at understanding the mechanisms driving the positive relation between UI generosity and nonemployment length. The empirical evidence on the relationship between UI generosity and mobility is very scarce and mixed. In their model, Hassler et al.(2005) argue that the large disparities in the generosity of unemployment benefits (UB) between Europe and the U.S. account for the different rates in geographical mobility, with Europe having more 6Rebollo-Sanz and Rodr´ıguez-Planas(2018) uses the 2012 and 2013 waves of the MCVL, while this paper uses waves from 20012 to 2017. 7The positive effect of UI on nonemployment duration is one of the most robust empirical findings in economics. For a very complete review, see Schmieder and Von Wachter(2016). 8Because I have information up to 2017, I also study how the policy affected the probability of becoming a long-term unemployed (LTU) worker. The incidence of long-term unemployment has become very salient during the Great Recession, reaching record levels during its peak and remaining significantly high one decade after its starting (Abraham et al., 2019). In Spain, more than half of the unemployed workers in 2018 were LTU. The findings in this paper suggest that the UI reduction decreased the probability of becoming LTU by 10 percentage points. In terms of magnitude, this represents a 20 percent decrease with respect to the pre-reform mean.
Recommended publications
  • Education and Geographical Mobility: the Role of the Job Surplus
    ISSN 2042-2695 CEP Discussion Paper No 1616 Title and Content Revised June 2019 (Replaced May 2019 version) Education and Geographical Mobility: The Role of the Job Surplus Michael Amior Abstract Better-educated workers form many more long-distance job matches, and they move more quickly following local employment shocks. I argue this is a consequence of larger dispersion in wage offers, independent of geography. In a frictional market, this generates larger surpluses for workers in new matches, which can better justify the cost of moving - should the offer originate from far away. The market is then “thinner” but better integrated spatially. I motivate my hypothesis with new evidence on mobility patterns and subjective moving costs; and I test it using wage returns to local and long-distance matches over the jobs ladder. Key words: geographical mobility, job search, education JEL Codes: J61; J64; R23 This paper was produced as part of the Centre’s Labour Markets Programme. The Centre for Economic Performance is financed by the Economic and Social Research Council. I am grateful to Alan Manning for his support at LSE. This paper was part of my PhD thesis at UCL, and I thank my PhD supervisors Steve Machin and Jeremy Lise and examiners Marco Manacorda and Ian Preston for their support and advice. I also thank David Albouy, Dan Black, Mitch Downey, Mike Elsby, Eric French, Georg Graetz, David Green, Caroline Hoxby, Kevin Hutchinson, John Kennan, Felix Koenig, Hamish Low, Barbara Petrongolo, Steve Pischke, Jan Stuhler and Coen Teulings for helpful comments, as well as participants at the EEA Annual Congress, RES Annual Conference, Annual Search and Matching Conference, and seminars at Uppsala, LSE, Tel Aviv, Hebrew University and Cambridge.
    [Show full text]
  • Declining Migration Within the US: the Role of the Labor Market
    NBER WORKING PAPER SERIES DECLINING MIGRATION WITHIN THE U.S.: THE ROLE OF THE LABOR MARKET Raven Molloy Christopher L. Smith Abigail Wozniak Working Paper 20065 http://www.nber.org/papers/w20065 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 April 2014 Wozniak would especially like to thank Frank Limehouse and the team at the Chicago Census Research Data Center for assistance with the restricted National Longitudinal Surveys. Ning Jia (University of Notre Dame) and Adam Scherling (Federal Reserve Board) also provided invaluable research assistance. The authors would like to thank Moshe Buchinsky and James Spletzer as well as seminar participants at Temple University, the University of Notre Dame, UW-Madison, University of Illinois-Chicago, UC-Santa Barbara, and conference participants at the Federal Reserve System conference on Regional Analysis, the 2012 Census Research Data Center Researcher conference, and the Society of Labor Economists. Any errors are our own. Any opinions and conclusions expressed herein are those of the authors and do not indicate concurrence with other members of the research staff of the Federal Reserve, the Board of Governors, the U.S. Census Bureau, or the National Bureau of Economic Research. All results have been reviewed to insure that no confidential information is disclosed. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w20065.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
    [Show full text]
  • The Impact of Immigration on the Geographic Mobility of New Zealanders
    The Impact of Immigration on the Geographic Mobility of New Zealanders Steven Stillman and David C. Maré Motu Working Paper 07-05 Motu Economic and Public Policy Research April 2007 Author contact details David C. Maré Motu Economic and Public Policy Research Email: [email protected] Steven Stillman Motu Economic and Public Policy Research Email: [email protected] Acknowledgements We thank Melanie Morton, Joanna Hendy, and Yun Liang for exceptional research assistance and Jacques Poot and participants in the Motu Adjustment and Inequality Workshop for comments on the paper. We also thank James Newell for providing us with data and assistance in creating local labour market boundaries. Access to the data used in this study was provided by Statistics New Zealand under conditions designed to give effect to the security and confidentiality provisions of the Statistics Act 1975. All non-regression results using Census data are subject to base three rounding in accordance with Statistics New Zealand’s release policy for census data. The project is funded as part of Motu’s “Understanding Adjustment and Inequality” research programme, which has core funding from the Foundation for Research, Science and Technology. Additional funding has been provided by the Department of Labour Immigration Service to whom we are grateful. Any views expressed are the sole responsibility of the authors and do not purport to represent those of the Department of Labour, Motu or Statistics New Zealand. Motu Economic and Public Policy Research PO Box 24390 Wellington New Zealand Email [email protected] Telephone +64-4-939-4250 Website www.motu.org.nz © 2007 Motu Economic and Public Policy Research Trust.
    [Show full text]
  • “Brain Drain” from Italy?
    HOW LARGE IS THE “BRAIN DRAIN” FROM ITALY? SASCHA O. BECKER ANDREA ICHINO GIOVANNI PERI CESIFO WORKING PAPER NO. 839 CATEGORY 4: LABOUR MARKETS JANUARY 2003 An electronic version of the paper may be downloaded • from the SSRN website: www.SSRN.com • from the CESifo website: www.CESifo.de CESifo Working Paper No. 839 HOW LARGE IS THE “BRAIN DRAIN” FROM ITALY? Abstract Using a comprehensive and newly organized dataset the present article shows that the human capital content of emigrants from Italy significantly increased during the 1990’s . This is even more dramatically the case if we consider emigrating college graduates, whose share relative to total emigrants quadrupled between 1990 and 1998. As a result, since the mid-1990’s the share of college graduates among emigrants from Italy has become larger than that share among residents of Italy. In the late nineties, between 3% and 5% of the new college graduates from Italy was dispersed abroad each year. Some preliminary international comparisons show that the nineties have only worsened a problem of ”brain drain”, that is unique to Italy, while other large economies in the European Union seem to experience a ”brain exchange”. While we do not search for an explanation of this phenomenon, we characterize such an increase in emigration of college graduates as pervasive across age groups and areas of emigration (the North and the South of the country). We also find a tendency during the 1990’s towards increasing emigration of young people (below 45) and of people from Northern regions. JEL Classification: F22. Sascha O.
    [Show full text]
  • Geographic Mobility Among Older People and Their Adult Children: the Role of Parents' Health Issues and Family Ties
    Accepted: 26 June 2020 DOI: 10.1002/psp.2371 RESEARCH ARTICLE Geographic mobility among older people and their adult children: The role of parents' health issues and family ties Alyona Artamonova1 | Brian Joseph Gillespie1 | Maria Brandén2,3 1Population Research Centre, Faculty of Spatial Sciences, University of Groningen, Abstract Groningen, The Netherlands This research examines the relationship between older parents' health issues and 2 Demography Unit, Stockholm University, (i) their relocations closer to their faraway adult children, (ii) their relocations into Stockholm, Sweden 3The Institute for Analytical Sociology, institutionalised care facilities, or (iii) having distant children move closer. Addition- Linköping University, Norrköping, Sweden ally, we investigate how these relocations are structured by children's gender and Correspondence location. We focused on parents aged 80 years and older and their distant children. Alyona Artamonova, Population Research Multinomial logistic regression models were employed for older men and women Centre, Faculty of Spatial Sciences, University of Groningen, Landleven 1, Groningen, The based on data from administrative registers of Sweden. Whereas severe health prob- Netherlands. lems were associated with an increased likelihood of parent relocations closer to their Email: [email protected] children or into institutions, they were not associated with the likelihood of children's Funding information moves towards parents. Mothers were more likely to move towards daughters or H2020 European Research Council, Grant/ Award Number: 740113; Swedish Research towards distant children who had at least one sibling living nearby. Children moved Council for Health, Working Life and Welfare, closer to their parents when there was at least one sibling living near the parent or in Grant/Award Number: 2016-07115 response to their own life circumstances.
    [Show full text]
  • Geographic Mobility in the Sioux City Region, 1860--1900
    University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Great Plains Quarterly Great Plains Studies, Center for Summer 1982 Citizens And Strangers: Geographic Mobility In The Sioux City Region, 1860--1900 William Silag State Historical Society of Iowa, Follow this and additional works at: https://digitalcommons.unl.edu/greatplainsquarterly Part of the Other International and Area Studies Commons Silag, William, "Citizens And Strangers: Geographic Mobility In The Sioux City Region, 1860--1900" (1982). Great Plains Quarterly. 1667. https://digitalcommons.unl.edu/greatplainsquarterly/1667 This Article is brought to you for free and open access by the Great Plains Studies, Center for at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Great Plains Quarterly by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. CITIZENS AND STRANGERS: GEOGRAPHIC MOBILITY IN THE SIOUX CITY REGION, 1860--1900 WILLIAM SILAG An American literary and scholarly tradition Unfortunately for those who would make upholds the midwestern town as a bastion of sense of the social consequences of American social stability. In novels by William Dean urbanization, the stereotype has little basis in Howells, Mark Twain, and a host of nineteenth­ fact. Recent research on the character of century authors, comforting images of small­ American life prior to World War I reveals an town tranquility provide sharp contrast to entire society in flux. 2 The impact of indus­ scenes of urban turmoil in the'age of industrial­ trialization reverberated across the continent; ism. Even the town's critics, from Edgar Watson small towns and rural areas were not immune to Howe to Sherwood Anderson, pay tribute to its effects.
    [Show full text]
  • Spatial Influences in Upward Mobility
    Spatial Influences in Upward Mobility∗ Garrett Anstreicher University of Wisconsin-Madison December 5, 2020 Abstract This paper extends a canonical model of intergenerational human capital investment to a geographic context in order to study the role of migration in determining optimal human capital accumulation and income mobility in the United States. The main result is that migration is considerably influential in shaping the high rates of economic mobility observed among children from low-wage areas. Accounting for human capital investment behavioral responses to future migration opportunities is important, and these behavioral responses result in skill price shocks having highly varied effects on the earnings of natives based on the location in which they occur. Policies that attempt to decrease human capital flight from low-wage areas via cash transfers are unlikely to be cost-effective. Keywords: Intergenerational mobility, migration, human capital theory. ∗Email: [email protected]. I am heavily indebted to John Kennan and Ananth Seshadri for their insights and patience. Thanks also to Manuel Amador, Dean Corbae, Chao Fu, Tim Kehoe, Joel McMurry, Jeff Smith, Sandra Spirovska, Joanna Venator, Chris Taber, Matt Wiswall, Anson Zhou, and seminar par- ticipants at both Wisconsin labor workshops and EMCON for helpful comments and feedback. This re- search was partially supported by the Summer Research Fellowship generously provided by the University of Wisconsin-Madison. Additionally, this material is based upon work supported by the National Science Foundation Graduate Research Fellowship Program under Grant No. DGE-1747503. Any opinions, find- ings, and conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of the National Science Foundation.
    [Show full text]
  • UNEMPLOYMENT INSURANCE and WORKER MOBILITY Ryan Nunn, Laura Kawano and Ben Klemens February 8, 2018
    UNEMPLOYMENT INSURANCE AND WORKER MOBILITY Ryan Nunn, Laura Kawano and Ben Klemens February 8, 2018 ABSTRACT Unemployment insurance (UI) helps workers to smooth their consumption after employment loss, but also diminishes their incentive to quickly find new jobs. While both of these considerations have been extensively studied, little or no attention has been paid to possible implications of UI for worker migration. In principle, UI could either reduce or increase worker interstate mobility. If recipients are sufficiently discouraged from seeking re-employment, migration would diminish as workers became less likely to move in search of new jobs. On the other hand, if UI allows recipients to conduct a more ambitious job search, it could lead to more migration and better matches between workers and firms, with important implications for labor productivity. Our analysis provides preliminary evidence that the latter occurs. Moreover, a provision of U.S. extended benefits that penalizes some interstate moves appears to have a small negative effect on worker migration. INTRODUCTION After an involuntary job loss, unemployed individuals suffer large and persistent negative impacts on their earnings (e.g., Jacobson et al. (1993), Couch and Placzek (2010)). The unemployment insurance (UI) program offsets a significant proportion of income losses and helps to facilitate consumption smoothing after these negative shocks (Dynarski and Gruber (1997), Stephens (2001)). 1 However, because UI is only paid to the unemployed—i.e., re-employment causes a worker to become ineligible—moral hazard is an important policy concern. In particular, UI may discourage the eligible unemployed from searching for a job or accepting job offers.
    [Show full text]
  • Isabel Kentengian – CV – September 2020
    Isabel Maria Kentengian The College of New Jersey Department of World Languages and Cultures Bliss Hall 324 2000 Pennington Road Ewing, NJ 08648 +1(609) 771-2699 [email protected] I. Academic and Professional Employment The College of New Jersey, Ewing, New Jersey Instructor, World Languages and Cultures, Fall 2004-present Director, TCNJ Semester in Spain 2019, TCNJ in Spain 2016 Co-Director, TCNJ in Madrid, 2005, 2008 University Children’s Eye Center, East Brunswick, New Jersey Practice Administrator, 1993-2004 Middlesex College, Edison, New Jersey Instructor, English as a Second Language, 1996-1998 University of Illinois, Chicago, Illinois Instructor, Tutorium in Intensive English, 1991-1992 Columbia University, New York, New York Instructor, American Language Program, New York, NY, 1988-1991 MacCormac College, Chicago, Illinois Director and Chair, English Language Institute, 1987-1988 Director, Evening Program of the English Language Institute, 1985-1987 Instructor, English Language Institute, 1982-1985 Oak Park Elementary Schools, Oak Park, Illinois Teacher and Curriculum Coordinator, Spanish Language Program, 1982-1984 Iberlengua, Madrid, Spain English Instructor, 1978-1979 Colegio Base, Madrid, Spain. Middle and High School English Teacher, 1978 II. Educational Background New York University, Steinhardt School of Culture, Education and Human Development Ph.D., International Education. Focus: Global Education. 2020. Dissertation Title: "It's Just Another Variety": Experiences of Imagined Identities of Latino Spanish Heritage Speakers in Spain Dissertation Advisors: Philip Hosay, Ph.D. (Chair); Sonia Das, Ph.D.; Miriam Eisenstein Ebsworth, Ph.D. University of Illinois, Chicago, Illinois.1985. M.A., Applied Linguistics - Focus on Hispanic Linguistics and Second Language Acquisition. Thesis Title: “Effects of Age and Gender on Generic Pronoun Choice: A Multivariate Experimental Approach” Thesis Advisor: Elliot Judd, Ph.D.
    [Show full text]
  • Intra-Firm Geographic Mobility
    Forthcoming in Advances in Strategic Management Intra-firm Geographic Mobility: Value Creation Mechanisms and Future Research Directions Prithwiraj (Raj) Choudhury1 This paper argues that intra-firm geographic mobility is an understudied mechanism that can help mitigate coordination failures in a geographically distributed organization. The paper presents an organizing framework on how intra-firm geographic mobility creates value for firms and discusses how intra-firm geographic mobility can create value for individual workers. The paper concludes by presenting a future research agenda for intra-firm geographic mobility in light of emerging phenomena such as global collaborative patenting by multinationals, temporary colocation of knowledge workers, and nonstandard work. Keywords: Intra-firm geographic mobility, coordination failures, multilocation firms. 1 Harvard Business School. Email: [email protected]. The author thanks Ryan Allen, Bruno Cirillo, Russ Coff, Martine Haas, Barbara Larson, and Daniel Tzabbar for comments on an earlier draft. 1 Forthcoming in Advances in Strategic Management The topic of employee mobility has received extensive attention in the strategy, innovation, and organizations literature (Agrawal, Cockburn, & McHale, 2006; Agarwal, Ganco, & Ziedonis, 2009; Bidwell & Briscoe, 2010; Campbell et al., 2012; Cirillo, Brusoni, & Valentini, 2014; Dahl & Sorenson, 2010; Marx & Timmermans, 2017; Rosenkopf & Almeida, 2003; Singh & Marx, 2013; Song, Almeida, & Wu, 2003; Starr, Ganco, & Campbell, 2018; Tan & Rider, 2017; Tzabbar, 2009). However, almost all of this research is focused on the antecedents, barriers, and consequences of inter-firm career mobility, that is, mobility of employees between firms. It is worthy to point out that inter-firm career mobility of workers does not necessarily include a geographic component; for example, workers moving from Google in Silicon Valley to Facebook in Silicon Valley shift organizations, but not geographic locations.
    [Show full text]
  • Geographic Labor Mobility in the United States: Recent Findings*
    Geographic Labor Mobility in the United States: Recent Findings* THIS ARTICLE presents the major conclusions Three waves of interviews wit,h cross-sections of a study recently completed by t,he University of the United States population, conducted in of Michigan Survey Research Center and re- August-September 1962, November-December ported in The Geographic Mobility of La.bor,1 as 1962, and November 1963, yielded information yet unpublished. The st,udy, supported in part by from nearly 4,000 respondents. Of these, about a research grant from the Social Security Admin- 3,570 were white, 350 were Negro, and 50 were istration, makes a significant contribution toward other nonwhite. There were also three special understanding the relationship between geo- samples involving: (1) interviews with 433 fam- graphic mobility and the economic well-being of ilies living in redevelopment areas in September- American workers, a matter of long-standing October 1962; (2) reinterviews, in September- interest to the Social Security Administration. October 1962 and February 1963, with a total of A comparison of Negro-white differences in 189 individuals who reported in the 1962 or 1963 geographic mobilit,y, also drawn from the Survey Survey of Consumer Finance that they had Research Center study, will appear. in a future moved in the year before they were questioned ; and issue of the BULLETIN. (3) reinterviews in August 1963 with 1,750 per- sons who had been interviewed in the first cross- section or the first special sample. This final sam- SCOPE OF THE STUDY ple was designed to determine the accuracy of For the purposes of this investigation a move predictions of annual mobilty made on the basis was defined as a change of residence between of variables measured in the first interview.
    [Show full text]
  • Geographic Mobility
    Geographical Mobility: 2005 to 2010 Population Characteristics David K. Ihrke and Carol S. Faber Issued December 2012 P20-567 INTRODUCTION years ago. This type of question is BACKGROUND limited by the fact that it does not Geographical mobility data are used Since 1940, every 10 years the capture repeat migration (people to determine the extent of mobility census asked individuals where who leave a residence and return of the U.S. population and result- they lived 5 years ago, with the within the 5-year period) and only ing redistribution. Migration data exception of the 1950 Census, captures one move. Moves are are collected as part of the Annual which asked for residence 1 year commonly classified by type: within Social and Economic Supplement ago. Beginning in 1975, the CPS the same county, from a different (ASEC) to the Current Population asked a similar question on previ- county in the same state, from a Survey (CPS).1 How populations ous residence for the first 5 years different state, or from abroad. change has implications for fed- of the decade, a period not covered eral, state, and local governments, Report Highlights by the census. This allowed for an as well as for private industry. expansion of the time series and Researchers can identify character- · The 5-year mover rate for 2010 provided 5-year estimates for the istics of movers from these data was 35.4 percent, the lowest in period between decennial censuses. and track the mobility of the CPS history. With the discontinuation of the U.S. population over time.
    [Show full text]