THE ECONOMIC CONSEQUENCES OF MIGRATION IN METROPOLITAN AND NON-METROPOLITAN AREAS OF THE U.S. (UNITED STATES)

LISA WOOD, University of Pennsylvania

Abstract

A necessary step toward improving economic development policies is a better understanding of the relationship between economic and demographic factors in a region. This dissertation examines the economic consequences of migration in metropolitan and non-metropolitan areas of the U.S. In order to do this a regional model is developed which incorporates economic base theory into a labor market analysis. An econometric two-sector regional model is estimated for the metropolitan and non-metropolitan areas in each of the 9 Census regions of the U.S. using three stage least squares. Net migration elasticities with respect to wages and employment are estimated which provide information on the magnitude of the demand effects due to migration in a region and whether or not a region is experiencing human capital effects due to migration. Demand effects due to migration are greater in metropolitan areas than in non-metropolitan areas indicating more of a multiplier effect in these areas. Human capital effects due to migration dominate in rural areas and in the South Atlantic, West South Central and Mountain regions. Labor supply and demand elasticities are estimated for each region which provide information as to whether employment growth in a region is responsive to supply or demand shifts. The New England and Mid-Atlantic regions are likely to benefit most from policies aimed at attracting industry or 'demand side' policies. Growth in the South Atlantic and Mountain regions is generally driven by supply induced changes. These regions would benefit from 'supply side' policies, that is, policies aimed at attracting people to a region. In general, the remaining Census regions will benefit from a mix of demand and supply oriented economic development policies.

Subject Area

Labor economics

Recommended Citation

WOOD, LISA, "THE ECONOMIC CONSEQUENCES OF MIGRATION IN METROPOLITAN AND NON-METROPOLITAN AREAS OF THE U.S. (UNITED STATES)" (1987). Dissertations available from ProQuest. AAI8714154.
https://repository.upenn.edu/dissertations/AAI8714154

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