Spatial Dependence, Social Networks, and Economic Structures in Japanese Regional Labor Migration

Koji Murayama,Jun Nagayasu,Lamia Bazzaoui

doi:10.3390/su14031865

Abstract

This study empirically analyzes the determinants of regional labor migration in Japan, where small towns are disappearing due to the shortage of labor. Using spatial models of origin–destination flows and considering network effects of labor and economic structures, we obtain results more consistent with the standard migration theory, compared to previous studies. In particular, we find that migration decisions are based on economic motivations and that high (low) unemployment rates in origin (destination) regions and low income in origin regions are important determinants of labor migration flows. Second, we report that network effects, which help reduce migration costs, play a significant role in the relocation of labor. Finally, considering different definitions of spatial weights based on distance, the volume of traded goods, and economic structures, we show that regional dependence is most appropriately defined by the similarity in economic structures. In other words, migration patterns are similar between regions that rely on analogous economic activities.

Highlights

Internal migration has traditionally played an important role in shaping population dynamics and increasing welfare levels by acting as an equilibrating mechanism in the labor market and shifting farming population to more productive urban industrial sectors [1,2].population movements can be accompanied by negative effects such as increasing regional disparities in terms of income, infrastructure, and well-being, as well as reduction of the standards of living in overpopulated areas and the decline of some industries due to lower factor endowments in some regions [3,4,5]
Our approach departs from previous analyses that usually rely on a single spatial weight matrix based on geographical distance, as we introduce several definitions of regional dependence in the data
We find that most parameters are statistically significant

Summary

Introduction

Internal migration has traditionally played an important role in shaping population dynamics and increasing welfare levels by acting as an equilibrating mechanism in the labor market and shifting farming population to more productive urban industrial sectors [1,2].population movements can be accompanied by negative effects such as increasing regional disparities in terms of income, infrastructure, and well-being, as well as reduction of the standards of living in overpopulated areas and the decline of some industries due to lower factor endowments in some regions [3,4,5]. The increased socioeconomic differences between regions are becoming more and more challenging to policymakers who must consider the impacts of macroeconomic policies, designed at the national level, on the different individual regions. These differences strongly contribute in shaping the spatial distribution of population by affecting interregional migration (see [7,8]), as there is a tendency for people to move to urban areas where there are more job opportunities and easier access to medical facilities, shops, and public transportation.

Results

Discussion

Conclusion