ch8 mobility 鲍哈斯劳动经济学 英文ppt.pdf

ch8_mobility_鲍哈斯劳动经济学 英文ppt LABOR MOBILITY
Jisoo Hwang
2014 Fall
Introduction
2
 In petitive equilibrium, search activities equate VMP of
labor across firms and labor markets for workers of given skills
→ efficient allocation.

 In reality, neither the firm nor the worker plete
information; existing allocation of workers and firms is not
efficient.

 Labor mobility is the mechanism labor markets use to improve
the allocation of workers to firms.
 Workers want to improve their economic situation.
 Firms want to hire more productive workers.
Introduction
3
 What are the determinants of migration?
 How do the migrants differ from the persons who chose to
stay?
 What are the consequences of migration, both for the migrants
themselves and for the localities they move to?
 How large are the efficiency gains from migration?
4 Migration
Geographic Migration
5
 Migration is a form of human capital investment.

 Mobility decisions are guided paring present value of
lifetime earnings among alternative employment opportunities in
different locations.
 M: moving cost
 Move gain to migration > 0

𝑤𝑁𝑌𝑤𝑁𝑌
𝑃𝑉𝑁𝑌= 𝑤𝑁𝑌+ 21 + 22 + ⋯
20 1+𝑟 1+𝑟 2
𝑤𝐶𝐴𝑤𝐶𝐴
𝑃𝑉𝐶𝐴= 𝑤𝐶𝐴+ 21 + 22 + ⋯
20 1+𝑟 1+𝑟 2

Net Gain= 𝑃𝑉𝐶𝐴−𝑃𝑉𝑁𝑌−𝑀
Geographic Migration
6
 Improvements in economic opportunities available in a destination
location increases gains to migration and raises the likelihood
a worker moves.

 Improvements in economic opportunities available in the current
location decreases gains to migration and lowers the
likelihood a worker moves.

 An increase in migration costs lowers gains to migration,
decreasing the probability a worker moves.

 Any evidence?
Internal Migration in the .
7
 The probability of migration is sensitive to the e differential
between the destination and original locations: 10% increase in
e d