Search Time, Unemployment, and the Migration Decision

Abstract

Unemployed people in distressed areas of the US have been reluctant to migrate to other areas in search of employment. A negative correlation exists between weeks of job search and probability of migration and between local unemployment rates and out-migration rates. Schwartzs model of migration behavior relates job search time to age and education. Widening the area searched reduces job search time. Job density is a function of worker age and education. The feasibility of switching occupations declines with increasing age or education. A worker with a given age and education can choose between greater search time and greater search area. Minimizing search time increases the likeliness of migration. The study hypothesizes a negative relationship between length of job search and probability of migration and a positive relationship between length of job search and workers age and education. Data analyzed are from the US Panel Study of Income Dynamics which followed 6000 adults from 1968-80. For the unemployed data show that search time is an important migration determinant. Likeliness of migration decreases over time. Therefore areas with longterm unemployment will have lower rates of out-migration.