Abstract

For nearly 3 decades regional economists have debated about the direction of the relationship between interregional migration and regional employment growth. This study hypothesizes that migration and manufacturing employment growth are jointly determined but that the effects of employment growth on interstate migration are stronger than the converse effects. To test this hypothesis, two-stage least squares is used to estimate a simultaneous equations model of migration and manufacturing employment growth. As hypothesized, the results show that manufacturing growth and migration are jointly determined and that manufacturing growth has a stronger effect on migration than vice versa.

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