Abstract

This paper studies the influence of education on labor and geographic mobility. Mobility is an important equilibrating factor in a changing economy. Therefore, any factor that induces mobility also alleviates the symptoms of disequilibrium, and any factor that inhibits mobility also impedes economic adjustments. Does the increasing level of education in modern industrial societies help or hurt economic transitions? In a PSID subsample consisting of 736 individuals, labor and geographic mobility from 1968 to 1982 were observed and related to the level of education in 1968 using the Poisson regression approach. It appears that labor and geographic mobility are governed by quite different behavioral mechanisms. Education strongly effects future labor and geographic mobility, but in opposite ways. A high level of education inhibits labor mobility, but increases geographic mobility.

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