Where science, technology, engineering, and mathematics (STEM) graduates move: Human capital, employment patterns, and interstate migration in the United States.

Abstract

This research investigates the interstate migration of workers in the United States who have earned an undergraduate STEM (science, technology, engineering, and mathematics) degree compared with those who have not. We build on previous studies that (a) classified "skilled" workers as having earned an undergraduate degree (b) used net migration gain or loss as a yardstick of relative destination attraction, and (c) advanced the idea that physical amenities play an outsized role in labour market preferences for skilled workers. We calibrate the attractivity of states for three levels of human capital and then evaluate these assessments of relative attractivity to show that workers with different types of human capital respond to different labour market signals in contradictory ways. Amenity, measured by heating degree days, has little to do with the state-to-state migration of workers who have a STEM degree, yet helps explain the migration patterns of workers with no undergraduate degree. Employment growth in a state influences migration for degreed workers in the recessionary years but not in the period of recovery. The opposite holds for workers without a degree. States with high percentages of any type of degreed workers attract both STEM and non-STEM degreed migrants but not those without a degree. States with a large share of STEM degreed workers in their degreed workforce are especially attractive for STEM degreed migrants. The conclusions discuss what the findings imply about diverging access to labour market opportunity by human capital and state higher education policy.