Abstract
In this study we investigate migration’s effect on labor market transitions. Specifically, we explore transition rates out of unemployment (to employment) and from nonparticipation to active job search. To facilitate this, a multistate model of the hazard rate is developed and subsequently estimated. Our results strongly suggest that migration is both directly and indirectly associated with a suc-cessful transition to re-employment.
Highlights
We explore transition rates out of unemployment and from nonparticipation to active job search
Migration at a point in time is shown to be the primary determinant of re-entry into the labor force at a future date
Let T represent the time until the household head changes from the current employment state to one of the other two possibilities measured from some reference point
Summary
The United States has been characterized by a geographically mobile population. Notice among these estimates that educational attainment significantly affects labor market outcomes In this regard, heads of households with low levels of education (the two categories of no high school and some high school) are significantly less likely than high school graduates to exit nonparticipation and begin active job search (see column 1). This positive impact of migration occurs within our sample The importance of these results stems, in part, from the implied impact of time in state on labor market transitions. Parameter Estimates for Job Search Transitions Over the Period January 1987-March 1989a
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